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 suggest the author find a dictionary and look up should and would.
There is a difference.
Oh C’mon, Paul Krugman has already declared that Trump’s plan is best anf Krugman is some kind of fiscal “genius”. LOL
It’s great to see healthy competition.
Go, Cruz, GO!!
Go, Trump, GO!!
We win, they lose.
I see M2T, copycat Cruz is at it again. Gosh, he’s been in the race since April, 2015, and now on the eve of the IA caucus, he all of a sudden has a plan to bring jobs back from China. Not only a plan - but, by golly - one that is better than Trumps. Cruz has never had an original idea in his entire life. If Trump doesn’t say it - then Cruz is clueless.
I would also remind everyone that in Trump we have a man who does not stand in front of a mirror for hours parsing every single word he plans to utter someday, and then writes it out or uses a tele-prompter to be certain he says it exactly as planned.
Therefore, the listener needs to use some common sense in interpreting what has been said.
Edward is a sitting senator. Why doesn’t he go ahead and introduce legislation to get
this plan implemented? Get a jump on the process for when Trump takes office in Jan. 2017.
Ted’s a Senator
He could start his plan now
Oh wait- no one likes him enough to work with him
Like that’ll change if he ever takes the WH
Which he won’t
The joke is on you. It wasn’t Paul Krugman, it was Larry Judlow, and yes, he did say Trump’s plan is best. You must feel foolish to shoot off your mouth with wrong information.
There was a Trump video the other day where Trump is testifying before Congress on the economy....and it was years ago....and Trump was amazing.
In reality, I'd say "expertise" on the economy...on a scale of 1 to 10....Trump is a 10....Cruz is a 2.
Now, not so much.
Cruz is a member of the Free Trade cult and, as such, is no friend to American manufacturing.
What can we export that China doesn’t already produce cheaper in their own factories?
Trump has had to calculate cost, etc in his working life such that his commpanies make a profit.
Politicians mostly have to figure out how to get another tax dollar.
LOL And it wasn’t Joy Behar who said that she’s warming up to Trump because his health care plans are just like Bernie’s.
Everyone makes mistakes is it really necessary to be so nasty??? I do not care who anyone votes for but the nastiness around here has become ridiculous!
Cruz the business genius. LOL
Doesn’t matter. No one cares about issues any more.
Now we want to be entertained.
Reality tv and all.
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