Posted on 12/05/2016 12:48:47 PM PST by Pinkbell
WASHINGTON; If President-elect Donald Trump thinks hes 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 presidents 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 dont 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. Thats the best way to solve this problem, McCarthy said.
(Excerpt) Read more at huffingtonpost.com ...
Pay more for our goods.
Have no job at all.
Hmmm, this is such a tough call on whose standards of living have been hurt more.
Let me give this some thought.
Companies that build cars have to use machines and materials that creates jobs at those suppliers and their suppliers. I don’t see the economic activity to that level writing code.
Forced higher cost of doing business (COGS) KILLS jobs, therefore,
- Minimum wage KILLS jobs
- Regulations KILLS jobs
- Union protection KILLS jobs
- High taxes KILLS job.
THOSE are the job killers. Those are what makes American business lose the competitive edge in the marketplace.
Thanks Jim.
And all this time I thought $0.10 cents an hour wages vs American wages was at least part of the problem.
Glad you cleared that up.
Let me ask you this Jim. How does lowering regulations in the U.S. bring back jobs by itself if China has none?
It doesn’t have unions. It doesn’t charge us high taxes as far as I know.
Looks like your model needs some work.
I used to live in McCarthy’s district - he’s a RINO, through and through.
McCarthy is a failed businessman who has been living off the taxpayers after he couldn’t make it on his own.
We all know Trump’s story.
And arrogant, condescending McCarthy thinks he knows more about business than Trump?!
McCarthy is in rare company these days. There are folks right here who think they do.
LOL
Not sure if that last post made sense to you.
I’ll clarify.
I support addressing each of these things you have mentioned. Having said that, I have to be honest with myself. How does eliminating our minimum wage help bring jobs back, if we’ll never get folks to work for Chinese wages?
How does it help if we eliminate every Regulation, if China doesn’t apply them there at this time?
Even if we got rid of every union, please explain why that makes us better than China. It doesn’t have them.
Yes, high taxes do kill jobs. Once again though, if we lowered our taxes to 10%, would that be less than our businesses pay China?
So while I want to address all these things, I have to admit it isn’t the competitive thing that some folks think it is. In some instances it would simply fall short of what folks already achieve in China.
That’s why I say tariffs must be a component of bringing back jobs.
On multiple occasions you have called me a traitor. This must stop.
Where did you receive this information that NAFTA is a big source of visa overstays from Mexico? I do not believe that you assertion is true.
Does equal protection under the law mean anything to you? So we are going to give an advantage to foreign companies over American companies that move overseas?
All of your questions are answered but the fact that COGS will be significantly lowered which itself will expand business investment and opportunity which leads to an expanded economy and the by-product of more jobs.
Combine that with the fact that foreign subsides and tariffs are foreign governments shooting themselves in the foot. Foreign subsidies, ie. socialist economic interference, weakens that countrys economy as does tariffs which artificially force higher prices on the foreign countrys 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 doesnt 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 dont 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 is why the average American has always been better off than the average citizen anywhere else.
Fugeddabouddit. It’s this guy’s favorite saying. Just call him a Government Command and Control Traitor.
Looks like the GOP members of the DC crony capitalism congressional establishment are now collecting their wits.....and starting their (inevitable) Trump pushback.....utilizing Kevin McCarthy as their Charlie McCarthy puppet to get the message out.
Leni
McCarthy may be in for a BIG surprise???
That's the general idea, whether it's a tariff or a border wall.. make it so high that it will discourage nearly everyone from challenging it.
Basic econ 201 teaches the three factors of production; land (you own or rent the plant or office), labor, and capital. When the damn Gov dictated $10 and hour and then some states $15 an hour, each increase cuts into the basic econ formula MRP=MRC. I have a major in both Bus and Econ. One can talk about 10 cent an hour but that is BS as the Chinese are buying all kinds of products. They now do what this country did since day one while the progressives have regressed us into socialism and even communism. We have people doing zip living better then many workers.
We The People should watch all these political hacks in Congress very closely to ensure that they are doing the work of the people; not lining their pockets and doing what they personally prefer. They were sent to Washington to represent the people, not themselves, their cronies, or their relatives. Apparently, they didn’t get the message on November 8th that the American people aren’t exactly happy with 98% of them.
Should you care to leave them a personal comment, you can reach them at the Capitol Switchboard at: 202-224-3121. Millions of calls might help remind them, ya think?
And you did not even touch on the meat industry where the government now allows foreign markets to compete on US soil without having to comply with all of the FDA regulations that the US meat industry has to comply with driving the meat industry in the US to its knees.
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