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 ...
I listened to some of that interview, and he did not categorically rule anything out. He did what politicians do — evaded and fan danced.
“Nope. “Fairness” requires government force which will never give you “fairness” or freedom. So people like you call for MORE government. Stupid.”
If you have ever read the US constitution you’d know trade is the one thing the federal government is tasked to do, but of course you haven’t read it.
Yes, the source is hardcore liberal.
I think what is being said is that “high” tariffs are a temp solution until this great country gets back on its feet. But once this is accomplished, adjust the tariffs to sustain our manufacturing and jobs market, not destroy them once again.
The idiots in our Congress no zip about business or econ.
Is it a war if you refuse to fight?
I don’t think it will take 35%. In some cases yes, but not across the board.
Even less than 10% will be sufficient in some cases.
That coupled with lowering taxes and reducing regulations to reasoned levels, combined with the EPA getting kicked in the groin, should work wonders.
Look at our corporate tax rate, then add mandated minimum wage, mandated insurance, plus WC, and so much more gov. regulation . The real corporate rate is at least 70%. Very few mom and pop stores can make it these days
Nope. That’s called a rout! :-) And the US has been in decline for decades because of the lack of support for US businesses through regulations and taxes.
Jim, I disagree on tariffs. Our Founders set them up to finance the government solely. If they could do it in those times, we should be able to do it today.
It works as a limiting factor on government sprawl too.
So while I think we utilize taxation to pay down the debt, moving to bare minimum taxes and tariffs should be the goal.
Jim, look at our nation. Has free (LOL) trade worked?
No. We tried the most rabid version we could and it fell flat on it’s face.
McCarthy, it’s all about jobs, stupid. You have them away and Trump wants to keep them here.
Dang man, you’re dealing with literally decades of federal government economic abuse. You gotta give economic recovery some time, just like it took some time for Reagan’s tax cuts to show the its amazing benefits.
Get the feds out and keep them out. And if we can finally get them out, keep them out - government interference with tariffs do more harm than good.
So many are confused about the effects of foreign subsides and tariffs. Foreign subsides and tariffs are the foreign governments shooting themselves in the foot. Foreign subsidies, ie. socialist economic interference, weakens that country’s economy as does tariffs which artificially force higher prices on the foreign country’s own citizens. Over time, business from a healthy free economy will out compete such artificial, empty measures in both price and quality. Just because they shoot themselves in the foot doesn’t mean we have to.
Countries that engage in such practices hurts themselves (and overall free trade) and those who refuse to do so benefit themselves and free trade.
Also, we don’t have to win in every market area. Some countries are better than others at certain things. Let the voluntary cooperation of buyers and sellers in the open competition of the free market work it out. Just keep government OUT. The consumer will always win, like the American consumer historically always has and why the average American has always been better off than the average citizen anywhere else.
The only valid reason for government to interfere with free trade is for bona fide defense reasons. Trump hasn’t mentioned defense as a reason for his tariffs. In fact tariffs don’t address defense at all. It would be government prohibiting the sale of certain things to certain enemy nations.
That’s a bit too convoluted for me.
Yeah, note how that’s conveniently not understood here
The Left loves people like you. And they make the same stupid, vague, and confused statements like you do and like you, have no rationale to back it up.
The Constitution gives Congress power to regulate foreign trade (it does NOT “task the federal government with trade”). Congress doesn’t HAVE to regulate foreign trade and I’m giving rationale why they generally should not.
Don’t confuse tariffs for revenue with tariffs for economic protection. Two different animals.
How so?
I’m not confused at all.
I support higher tariffs rather than see our nation gutted further.
Tariffs are not evil.
What we did with China was pure unadulterated EVIL.
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