Donald Trump Warns on House Republican Tax Plan

[question everything]

Source: WSJ

President-elect Donald Trump criticized a cornerstone of House Republicans’ corporate-tax plan, which they had pitched as an alternative to his proposed import tariffs, creating another point of contention between the incoming president and congressional allies.

The measure, known as border adjustment, would tax imports and exempt exports as part of a broader plan to encourage companies to locate jobs and production in the U.S. But Mr. Trump, in his first comments on the subject, called it “too complicated.”

“Anytime I hear border adjustment, I don’t love it,” Mr. Trump said in an interview with The Wall Street Journal on Friday. “Because usually it means we’re going to get adjusted into a bad deal. That’s what happens.”

Retailers and oil refiners have lined up against the measure, warning it would drive up their tax bills and force them to raise prices because they rely so heavily on imported goods.


Read more: http://www.wsj.com/articles/trump-warns-on-house-republican-tax-plan-1484613766

[Tiggeroshii]

1. "too complicated."

Being president is too complicated for him. Ergo, he should step down and let Pence swear in on Friday instead.

[Dark n Stormy Knight]

3. It's a badge of honor for RWers to fail to grasp complexities.

Anti-intellectualism thrills the masses.

[DeminPennswoods]

13. More than 140 characters

The GOP better learn to be succinct when propsing things to their dear leader.

[TreasonousBastard]

2. Pumpkinfaced shitweasel has no concept of history, and Smoot-Hawley in particular....

While that terrible tariff bill was not the cause of the Depression, it certainly did not help.

http://www.economist.com/node/12798595

We're in even worse shape now, since Comparative Advantage has sent entire segments of our industrial base overseas. Ever try to buy a US made camera or tablet? The concept started over barley and bananas but is far more inclusive now.

The auto industry alone will drive the trade managers nuts while going insane itself. BMW and Toyota assemble cars here, but import major parts from home. GM and Ford build cars here and in Canada and Mexico, but with parts from around the world.

And how do you count a car built in Mexico for world wide export with Canadian and US parts?

[Warpy]

4. What he's proposed, as I understand it, is tariffs on products produced

by US corporations that fled offshore to find cheap labor, no unions, and no inconvenient environmental laws.

That's something I'd like to see, actually. While I think the tariffs would be token amounts, anything that cuts into the obscene profit of exploiting offshore labor while pricing things as though they'd been made here is a good thing.

[Trust Buster]

5. Outdated thinking. The U.S. has a population of 320 million people. That pales in comparison

to the Asian consumer market. We no longer have the leverage to play these games. The WTO and a trade war would weigh in heavily. Globalism will not be reversed any more than the Industrial Age was reversed. We must adapt to a competitive world or pay a serious price.

[Warpy]

6. The Asian consumer market?

Who are you kidding?

Most of the population in Asia is still rural and still poor.

In addition, with their own products free of tariff (and don't forget, they do levy tariffs on our products coming into their countries), I sincerely doubt they'd upset trade over US based corporations taking a small ding.

[TreasonousBastard]

9. Japan and S. Korea are poor? China is staying poor? And then there's India and the Philippines...

who are trying to get it together.

(Mainly India, though-- the Philippines seem to be taking a few steps backward for now)

[muriel_volestrangler]

12. Examples: cars and smartphones

http://www.gbm.scotiabank.com/English/bns_econ/bns_auto.pdf (page 2)

In 1990-99, US sales averaged 14.55 million per year, of a world total of 39.2 million. But by 2015, US sales were 17.39 million of a total of 72.61 million, with China alone buying 20 million cars a year.

https://www.statista.com/statistics/412145/global-smartphone-sales-value-global-region/

In 2015, smartphone sales in China were $116bn; North America $72bn (world nearly $400bn).

[Trust Buster]

14. Asia is going to be the consumer behemoth of the next 50 years. Currently, GM sells more cars in

China than they sell in the U.S. The world has changed and requires a 21st century response instead of a knee jerk 20th century response IMO.

[Warpy]

16. Good luck with that

Remember, their rich people do not share, either.

[pbmus]

8. We are most definitely going to pay a serious price...

[TomCADem]

7. Surprised Republicans Don't Embrace it as a Regressive Sales Tax

A tariff is not a tax on earnings or profits like corporate income tax. Instead, a tariff would be imposed on imported goods. Given that Republicans have pushed for shift away from income taxes, which have a progressive rate structure, Republicans have sometimes proposed flat taxes or a heavier emphasis on sales taxes, which really hit folks who use most of their income for consumption.

This is what I see as the ultimate end game and "compromise" between Trump and Congressional Republicans. Lower corporate sales taxes, and make up the lost revenue with a sales tax, er tariff, on goods that is regressive in its impact on the working class. Indeed, why not adopt a progressive sounding idea like "basic income," but treat it as a block grant in lieu of social security and Medicare. Here is your $1000/month. Go buy housing, health care, etc.

I bet Frank Lutz is already working on the talking points in repackaging a regressive sounding tax into a patriotic, job protecting sounding "tariff."

[Hortensis]

15. Of course. Part of their scheme to switch to a flat tax

system. Sigh. What should be proof of perfidy will instead be embraced as proof for conservative voters that they did well.

[TreasonousBastard]

10. Yeah, but it's Trump we're talking about, and a Congress that can't be controlled...

so anything that could lead to a trade war should be avoided.

I prefer changing the tax code to get a few more bucks from overseas profits. Ultimately the same thing, but less dangerous.

[muriel_volestrangler]

11. Which affects a US-owned company that moves, but not a foreign-owned company that is already

manufacturing outside the USA. So US-owned companies would say they are discriminated against in favour of foreign companies - which no-one, workers or the rich, in the USA will see the point of. I think the US courts wouldn't let the singling out of American companies stand (in addition to the general trade agreements it would break).