Posted on 12/05/2016 12:48:47 PM PST by Pinkbell
WASHINGTON; If President-elect Donald Trump thinks he’s going to impose a 35 percent tariff on companies importing goods, he might want to check with Republicans in Congress.
House Majority Leader Kevin McCarthy (R-Calif.) suggested Monday that Republicans would not be in favor of imposing the 35 percent tariff on foreign goods that Trump proposed Sunday in a series of tweets.
Trump may not understand how tariffs really work; it would be very difficult for the United States to impose them on specific companies that move jobs to a foreign country; or that Congress, not the president, sets them. But he also might be trying to use trade complexities to end run around Congress.
The president’s administration could declare a given country in violation of certain trade acts, and then impose a retaliatory tariff. It would then be up to the other nation to lodge protest with the appropriate authority.
If Trump wanted to push the issue, he probably could impose a tariff and wait for Congress, the courts or a trade organization to do something about it. And if he truly wants to do it, Republicans could be the ones going after Trump.
“I don’t want to get into some sort of trade war,” McCarthy said, still downplaying the policy differences between Trump and congressional Republicans.
There is some debate about how much power the president has to enact tariffs and “rip up” trade deals. The president could declare the United States in violation of certain trade acts, and then try to impose a tariff based on those old laws, but there would be significant pushback from Congress.
Regardless, the majority leader said Republicans were intent on overhauling the corporate tax code so businesses would stay in the United States. “That’s the best way to solve this problem,” McCarthy said.
(Excerpt) Read more at huffingtonpost.com ...
The overseas company puts a factory here and avoids the tariff. What’s the big deal?
eGOP. The GOP is dead.
“.or restrictions on imports because of the size of the can etc etc”
These are known as non-tariff barriers which our competitors have used for decades. Reagan was the last President to use the Commerce Dept and trade restrictions to fight back.
This greatly displeased the libertarians over at Cato, who if they were ever accused of patriotism would never be found guilty.
“Trump’s tariffs:
Losers - the American consumer.
Winners - certain special interests.”
The American worker is a consumer and losing their jobs to foreigners doesn’t leave them any money to be consumers.
Jeez you Anti-American globalists are stupid.
This is all the art of the deal, but I am wondering if the 35% tax may not be a tariff, but rather a higher income tax rate. Currently the IRS has a domestic production tax credit (form 8903) that is a credit for manufacturers that produce goods in the USA. It might be that Mr. Trump will reverse this and propose that corporate taxes will go to 15% for most corporate income, butthat part of income generated from imported goods will be taxed at the current 35% rate.
Losers: companies using the current NAFTA trade agreement to search for Mexican poverty workers.
Winners: American workers, their families and the many local businesses their wages flow to.
Lowering taxes would be the first and fastest step, but you still have to account for finished products coming into the ports.
Or we could have one giant welfare state.
You people who confuse political globalism with the voluntary cooperation of the free market are stupid.
What are the capital requirements to write”code”? I think the capital required to “build” cars is probably quite a bit larger.
“voluntary cooperation of the free market are stupid.”
Free market isn’t a fair market.
What’s fair about our rules and taxes being applied to American companies but not to foreign companies??
Again, stupid people.
How about just getting the feds out of our lives. American ingenuity has overcome in the past and will now if we could just get the freaking feds out of the way. It’s all about freedom - something many even here on FR don’t get.
“What are the capital requirements to write”code”? I think the capital required to “build” cars is probably quite a bit larger.”
You might find coders have significant capital expenses, try over $1 million per 5 developers.
The GOPe has caved on every trade war event. To hell with the GOPe!!
Oh, yeah, difficult. Far more difficult than losing your job, fighting millions of others for a two day a week part time job, losing your house and car, . . .
Difficult for them so screw millions of working folks.
“What are the capital requirements to write”code”? I think the capital required to “build” cars is probably quite a bit larger.”
Of course.
You can start your own shop thats writes code, but I don’t image you can start an auto manufacturing company.
My point was about the employees.
And auto worker and a computer programmer are both working to produce a product at their job and they both receive a pay check.
What’s the difference between a person at woking on an auto assembly line and a person writing code?
They are both production jobs.
Free market isn’t a fair market.
Nope. “Fairness” requires government force which will never give you “fairness” or freedom. So people like you call for MORE government. Stupid.
Its called the carrot and the stick. Trump plans to make the environment in the US as business friendly as possible by lowering corporate taxes and reducing crippling regulations. Thats addressing the root cause.
The stick comes into play if they still wanna leave.
I’m not a fan of Mr. Trump’s plan to impose import tariffs as a way to stimulate domestic production/jobs. Brazil has tariffs on virtually all imports that are as high as 100%. The socialist paradise is hopelessly mired is government/business corruption as both sides work around the system.
We already have tariffs on over 12,000 goods from cars to carrots. If our trading partner is cheating (dumping) or anything in violation of existing agreements, then tariffs are appropriate. Otherwise, all they accomplish is higher prices and unnecessary tension with other nations.
I’m about freedom, but there’s no way you’ll ever tell me that it’s a better idea to give a Communist nation the majority of our manufacturing and intellectual property because we can save $10 per iPhone.
Showing once again why the chattering class and the LSM are so brain dead. Trump has NEVER proposed a 35% tariff on all imported goods . . . it is SOLELY on those companies that MOVE the plant, PRODUCE outside America and then look to IMPORT that MOVED PRODUCTION back here.
Morons.
The rest of this will be pretty simple. Focus on China and the $365 billion trade deficit (2015 as per the Fed Govt web sites) and a little bit with Mexico and leave pretty much the rest as is.
Make sure certain manufacturing capabilities that are STRATEGIC, like Steel, are taken care of. You can not rely on importing steel during a wartime event, no matter how much the WSJ theorists want you too.
The whole point of this election is that the American public has decided it will pay some more for certain products if it means a) their neighbor will have a job and b) the country will have access to strategic manufacturing capabilities when the need arises.
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