Posted on 12/06/2016 1:29:12 AM PST by reaganaut1
WASHINGTON — House Republican leaders signaled on Monday that they would not support President-elect Donald J. Trump’s threat to impose a heavy tax on companies that move jobs overseas, the first significant confrontation over the conservative economic orthodoxy that Mr. Trump relishes trampling.
“I don’t want to get into some kind of trade war,” Representative Kevin McCarthy, Republican of California and majority leader, told reporters in response to Mr. Trump’s threats over the weekend to seek a 35 percent import tariff on goods sold by United States companies that move jobs overseas and displace American workers.
Speaker Paul D. Ryan also pushed back against Mr. Trump on Monday in an interview with a Wisconsin reporter, saying an overhaul of the corporate tax code would more effectively keep companies in the United States than tax penalties. “I think we can get at the goal here,” he said, “which is to keep American businesses American, build things in America and sell them overseas — that can be properly addressed with comprehensive tax reform.”
Mr. Trump’s economic positions clashed with traditional conservatives during the campaign, but now these differences — on trade, government spending on infrastructure, and tax policies — have set the incoming president on a perilous course with the lawmakers whose support he needs to keep his agenda on track.
“There will be a tax on our soon to be strong border of 35 percent for these companies wanting to sell their product, cars, A.C. units etc., back across the border,” Mr. Trump said in a series of Twitter messages over the weekend.
(Excerpt) Read more at nytimes.com ...
Yup. It is unfortunate that the historically-challenged who consider themselves economic geniuses are uninformed.
No. It would create a domestic incentive for effective competing products, save American jobs and promote American businesses. Paul Ryan and McCarthy are two towering pieces of s***, who will work to undermine Trump at every turn. They are self-centered ghouls sucking the lifeblood of America and AMERICANS in return for campaign handouts from the crony capitalist global corporations which seek liquidation of our borders. Boh of these POS’s should be supporting their party’s choice as president, NOT UDERMINING him. Both McCarthy and Ryan are allies if that other damn POS John Boehner, who did everything possible to make the nightmare of the Obama years even worse,
And I am sick and tired of damn Never Trumpers supporting these idiots. Trump represents a movement not a political party and that movement destroyed the Democrats just ad it will destroy the feckless, pusillanimous Republican establishment represented by these two QUISLINGS.
This slimy guy has been attacking Trump at everybturn. He is a Never Trumper or a Democrat troll. Anybody who quotes the New York Times as a reputable source of criticism of Trump is no “Reagan”naut.
Troll he is.
35 % is a bit high. There would definitely be price increases to offset the tariffs. He may want to take a look at this issue from different perspectives and look for better tactics.
Like the other establishmentarians the GOP believes in a fantasy known as a ‘free market’. It doesn’t exist.
Yeah, isn’t that something. They are sniveling cowards with Obama. Now suddenly they got balls with a republican coming in.
Trade war with whom ? This tax isn't on a foreign company exporting to the US - such as Chinese company selling their products in the US. It is on a US based company bringing their goods back into the US.
Oh c'mon. Think of all the high end, designer label, celebrity endorsed merchandise that comes from worker hellholes. The workers endure near slave conditions while elitists, including those involved in global transportation, reap the profits.
A tariff is a Federal tax paid by consumers. It takes money out our pockets and sends it to Washington D.C.T'm not a fan. Neither was Milton Friedman.
But it promotes job growth in this country in the areas directly affected by the tariff. However there will be a loss of buying power in the hands of the general public with all that money going to Washington D.C. This will depress sales and therefore employment in other areas. (We won't need as many HDTV salesman if we put a tariff on the import of Chinese and Korean TVs.) OTOH, we will need to add staff at the Treasury department to keep track of the tariff schedules and collections.
So there are pluses and there are minuses. Looking at just the positive aspects of the Trump Tariff Policy is a big mistake but the opposite is true as well.
I think Trump will get some power to try out his tariff ideas. But I seriously doubt that he will get his 35%. I would bet on something closer to 10% with some typical restrictions that Congress just loves to put on everything they touch.
An interesting experiment. We'll see how it turns out. I hope it proves successful but I'm really not confident that it will. Tax reductions and the elimination of oppressive rules and regulations will (IMHO) have a much bigger impact on the economy and employment.
Whatever those ridiculous RINO’s want Trump needs to do the opposite as a general rule!
They think they are right because a tariff is a tax and they don’t want to get into raising taxes.
It has to be part of a total plan thar includes tax cuts. We wouldn’t get anywhere if they only passes this tariff
The tariff is on American companies that try to have it both ways, not south korean TV’s.
“But I seriously doubt that he will get his 35%”
He can do it with the stroke of a pen.
The tariff is on American companies that try to have it both ways, not south korean TV’s.
++++
I suppose you are correct about that but the principle still holds. There will be winners, losers and it will be the American public that pays the tariff.
He can do it with the stroke of a pen.
++++
Are you really sure about that? Can you provide a reference?
Correct, he needs legislation.
“A 35% tax on imports would raise prices for consumers and hurt many manufacturers that use imports in their products.”
Good.
“It would also start a trade war that would cost jobs in export industries.”
The phrase “trade war” has been thrown at us for decades & we lost 70,000 manufacturing plants in the process.
I’m all for short term pain for long term gain. Goodness knows the status quo is 100% unacceptable.
These are American companies. You cannot have a trade war with companies in your own country. Kevin McCarthy is slow.
Obama slapped a 35% tariff on Chinese tires not too long ago. Presidents have the power to do it unilaterally. Still waiting for the trade war.
“he needs legislation.”
Incorrect.
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