Posted on 01/23/2016 3:16:20 PM PST by conservativejoy
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Ted Cruz's plan to "bring jobs back from China" is better than Trump's
In the last GOP debate, Ted Cruz outlined his trade policies and how they would be superior to Donald Trump's.
First, Trump's plan is to impose tariffs of 45% on Chinese goods if they don't open up their markets. Trump has denied this 45% figure, and he would also probably deny this audio of his own voice saying, in fact, "the tax should be 45%".
Here's the positive scenario: if China buckled to trade pressures, and opens up its market, the tax/tariff would not be imposed, and more jobs would be created in America. But if instead China refused to open its market, and responded with tariffs of its own, our own exports ($120 billion dollars) to China would be hurt and Americans who work on export markets would lose their jobs. Furthermore with a 45% tariff all the goods coming into America would become 45% more expensive.
Imagine if your car, your furniture, your clothing, your electronics, all cost 45% more. For a billionaire with "New York values" and an income to match, that's nothing. But for the struggling middle class and working poor, their buying power will be substantially reduced. They will be impoverished. So this is a tremendously risky course of action that could have tremendously negative effects on our economy.
Ted Cruz's plan, by contrast, would eliminate the business tax on goods produced for export. As Cruz said:
Today, the U.S. taxes American producers that export goods, but it imposes no burden on imports. My business tax is border-adjusted, so exports are free of tax and imports pay the same business-flat-tax rate as U.S.-produced goods. By shifting to a territorial tax system that doesn't tax income earned overseas twice, my plan will reverse the incentive for U.S. companies to relocate overseas. Instead, businesses will be relocating to America.
The advantages of this plan are fourfold.
First, American exports to China would no longer have to pay tax, making them tremendously more competitive to sell in China. Remember that taxation is a cost, like the costs of goods or labor, and if you reduce the cost of producing goods, they can be sold less expensively. That will make American goods more competitive in China.
Secondly, it will generally become more advantageous for companies to produce goods in America than abroad, given the tax advantages. This tax change will "bring jobs back to America".
Thirdly, this plan will create jobs without sparking a trade war. Since this plan will not pressure the Chinese to do anything, they will have no grounds to start a tariff war with us that could cost thousands of American jobs.
And lastly, this plan does not create the possibility that the most basic consumer goods will go up in cost a whopping 45%. This plan creates jobs while protecting the purchasing power of less wealthy consumers.
Given that, I believe that Cruz's trade plan is superior to Donald Trump's.
I explain that a little differently.
I think there are two kinds of thinkers, excluding idiots, liberals and the like.
There are straight line thinkers. For instance engineers and production types who go straight from “A” to “B”.
And there are what I call circular thinkers who truly think in circles before they finally come to a conclusion.
But either or both should be judged not on how they get there, but whether they get to the right conclusion.
Trump seems to have reached the correct conclusion in his everyday life.
At least he does not seem to be in any danger of being indicted. whereas most politicians are only one jump ahead of someone with a badge.
Dumb, dumb, dumb. Cruz did not read the Art of the Deal, clearly. His move is not to establish leverage over China and force them to the table, which Trump would do. Instead he pays them a bribe.
The conservatives are trying to pound nails with a screwdriver. A free-market ideology is not going to solve our trade problem with China because they have a policy of managed trade. And, this is the problem that so-called conservatives are having against Trump. They don't want to solve problems. They just want ideological purity.
Bookmark.
Bookmark.
Click on the pic to find Meany McMeanpants Trump being mean to the little Warmette. :)
China already tariff our manufactured exports to China. How many times does this need to be explained.
I think you’ve lost control of Free Republic, Jim. The anti-Cruz people are lying about Cruz, a good man. And you are facilitating their lies. Trump may be a fine candidate, but to allow people to post malicious slander about Cruz is heartbreaking for a long-time FReeper like me. The Cruz hatred is overwhelmingly stong here ...
Looks to me like it’s going both ways.
Hmmmm... here’s one of the mud slingers now: http://www.freerepublic.com/tag/by:theo/index?tab=comments;brevity=full;options=no-change
“The average Chinese âconsumerâ earns about $1000 per month if they are upper middle class.
âOpening upâ Chinaâs markets wonât accomplish anything. Thatâs why China is AN EXPORT ECONOMY. They canât even sell their own products at home!!”
I’m omitting the last sentence as not too helpful, but that’s the problem with Cruz’s idea.
Now there are lots of Chinese with money, but there might be a little pressure by the Party not to buy the American goods...
I appreciate Ted’s attempt to avoid a tariff. Tariffs can be injurious, but they’re a necessary tool to get a beneficial deal and not simply be overrun by dumping as the free trade express has allowed to date. Like all such tools, we need someone who will a) keep it as an option, not cripple our negotiations by surrendering before we begin; and b) who the opponent believes will use it if needed.
Good to know. It isn’t on his campaign website.
Would this export clause be across the board for all US exports to china? Or just finished goods?
If it applies to only finished goods, it wouldn’t be a bad idea. If it applies across the board (raw materials/minerals/unprocessed agricultural products) them no effin way.
I am scrappy. And I do promote Cruz. But I don’t lie about the other candidates. Lots of Trump fans lying about Cruz ...
Really! It is pretty obvious to me that it is going a lot more powerfully ONE way than the other, Jim.
Trump-first folks are THE MINORITY here, I know it for a fact and anyone who doesn't believe me, oh well. I did the work to determine the reality here (again). And the truth is that 573 FReepers over the past few months have said that Trump is their SECOND choice or no choice at all, compared to 477 FReepers who say or consistently indicate that Trump is their first choice.
So Jim, how is it that a minority of voices here have so many convinced that they aren't the minority?
How is it that a minority manages to dole out EQUAL "both ways" junk compared to the majority? Also, I am sorry Jim, but proportionately MORE Trump supporters are A LOT more ugly and aggressive than a much smaller proportionate number of Cruz supporters, who use terms I hate like "Trumpanzees," "Trumpbots," and other insulting names for people I love but with whom I disagree. So your "argument" that it's going both ways, leaks like a sieve, from my informed observations here.
I am at this point. I will joyfully donate $100 to the FReepathon WHEN I am assured that neither I nor any other FReeper will be zotted for ANY opinion, and will ONLY be zotted for using profanities or for repeatedly resorting to personal attacks on individuals.
I want to be assured that NO FReeper will be zotted for civilly (or even angrily, but as long as it's not a personal attack on another FReeper) expressing the conservative opinion that they refuse to vote for Trump if he's the nominee BECAUSE etc., etc.
I will happily continue to donate if I am assured that NO FReeper will be zotted for challenging fellow conservatives' justifications for voting for leftists like Romney, no more than they should be zotted for challenging conservatives like me, who have finally woken up to the fact that WE have some nerve to complain about where the GOP is today because we VOTED FOR the candidates that made it that way.
I really love FR and I really love you and all you've done, JR; you and your family have been in my prayers for years, and are still there.
However, I love liberty and the Constitution more; in fact, my love for those two things are why I have been with FR for I think 12 or 13 years (I forget).
When people are banned for sharing how they intend to vote, this place will have lost its attraction for me.
I lack the words to express how sad that makes me to consider.
Feels like, I dunno...death.
Good post.
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