Posted on 05/05/2020 9:32:22 PM PDT by SeekAndFind
Rep. Mark Green (R-Tenn.) is set to introduce a bill to help companies move their manufacturing from China to the United States as momentum builds for the country to “decouple” from the Chinese regime as a result of the pandemic.
Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”
The move comes as the Trump administration pushes to cut its supply chain dependence on China. The pandemic’s disruption of global supply chains along with the Chinese regime’s mishandling of the outbreak has propelled the United States and other countries to find alternative manufacturing bases.
“Any efforts to decouple is … wise for us, both from an economic standpoint and from a national security standpoint,” Green said.
He said the bill was slated to be introduced by the end of the week.
Green recently introduced another bill aimed to stop China from acquiring U.S. companies vital to national security, as asset prices fall due to the pandemic.
“Right now, they are on a buying spree across the globe for companies with a significant national security implication,” he said.
The congressman cited as an example United Airlines’ recent sale and lease back of 22 planes to Bank of China Aviation, the Hong Kong-listed unit of Chinese state-owned Bank of China.
“Now China has 22 large aircrafts that they could take off the market
(Excerpt) Read more at theepochtimes.com ...
Why are Republicans so economically stupid?
Pretty good proposal. Fed revenue is going to take a huge hit no matter what.
Contrary to Republican mythology the American people are not stupid. They know how trade works.
bump
You might want to study some basic economics and learn about how free markets work. The free market is a prime mover in the rise of the US to the world's most powerful economy in the last 200 years.
Around these parts we frown on government intervention in the economy, especially the jack-booted types.
The Mises Institute is a good start.
I agree. They made fortunes selling out US workers. Let them pay their own way back.
They paid their own way to China. They can pay their own way back with all the extra profits they’ve made over the years.
MV=PY You might want to back off here. There are not free market across international borders. You have absolutely no Constitutional right to unrestricted duty free trade across international borders. None what so ever. Actually the opposite is the case. Trade with OTHER Countries is political as well as economic in nature.
With all due respect, my point stands - everyone should learn something about the importance of free markets. It's fun to listen to Milton Friedman
I don't think the solution is to impose laws on our own companies. The solution lies in dealing with the nature of trade with each individual country, so we move toward a more free market internationally. Restricting (ordering around) our own companies is not a long term solution.
Our companies should have the freedom to trade with other countries (yes, including labor). But the trade must take place under the laws in place regarding the relationship with each country. It's the government's job to create a framework in which the free market can thrive.
But it's worth noting that the debate about isolationism goes back to the founding fathers.
But it's worth noting that the debate about isolationism goes back to the founding fathers.
If you actually knew US history there was no debate at all. EVERY founding father was a trade protectionist, anti mercantilist if you will, to the extreme. To be a patriot yo must be a nationalist, to be a nationalist must be a protectionist. So what are you?
“Yup. The dems will vote “no” because they are economic illiterates, and they are against anything that’s good for America”.
That’s right. And of all times in our history when we needed Donald Trump to fix things and bring our economy back, we have these inept, evil bastards who only have the wrong interests at heart.
That anyone would vote against Trump in this critical time is more than disgusting. We know they’re going to do all they can to steal the election and it scares me to death that they might do it. If they steal the WH, they’ll steal the senate and we’ll be screwed royally.
You’re right. Good points.
Please see my post 32.
With the RATs and RINOs in the ChiCom pocket this bill is DOA.
Corporate “America”, too. The only thing would work is banning say PPE imports from China. Force companies to source elsewhere and they will. Nothing else will work.
Won’t go any good. As soon is President leaves Office they will be right back.
I'm a person who stands corrected about the stance of the founding fathers. And I know damned well I've earned the right to call myself a patriot.
As I said before, I don't believe in solving these problems with jack-booted laws that restrict our companies (thou shalt not use offshore resources in thy production). It is the path to socialism. How much control should the government have over production?
The world is rapidly changing with communication technology and we must adapt or lose. Can we achieve protectionism while reaping the benefits of "offshore" resources? I think we must.
So what is your position on tariffs, Mr. Patriot?
PS: We have total free trade between the 50 states and the with 350 million people of the USA. If that is not good enough for you Cathy Pacific offers flights daily to China.
They could start by getting rid of the IRS equipment and investment depreciation schedules. Simply let any company buying equipment to deduct that this year.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.