Cnn
B (b (b (
President Donald Trump says he believes revenue is a cure: a catch all -economic device that can restore US manufacture capacity, will bring heels to foreign countries on key disputes, restore trade balance, and take money that can help US -pay and reduce US deficit.
Trump is right that tariffs can help meet many people if not all these promises: when used effectively, prices can help promote home production by making foreign goods more expensive. Since the United States is a huge and diverse economy that does not rely on trade like its neighbors, the United States can use taxes to severely damage the economies of other countries without being submerged in recession. The income collected by revenue can help meet some of its deficit.
But, as the proverb, if it looks great to be true, it usually happens.
The problem with Trump’s plan is that tariffs cannot achieve all these goals at the same time. The reason for this is that Trump’s goals are often contradictory.
For example, if prices have a pressure campaign, they have to go away after being familiar with the countries – which means there will be no taxes to restore the trade balance. If prices are designed to promote the US manufacturing sector, they may not even increase revenue to meet the deficit-if the US is manufactured in USA goods, then who plays tariffs on foreign products?
And Trump’s tariff plan can work more to harm the US economy, rather than helping him. Trump has recently acknowledged that revenue will cause “trouble”. After Trump refused to predict him, the stock sank on Monday that his trade policies would result in the United States to survive recession.
But Trump proves a true believer in prices. He often praises former President William McCainley, who had imposed huge taxes on foreign countries even before the US income tax 100 years ago. Trump has often said that the tariff is a “a beautiful word” that will make the American rich again.
Despite repeated delays and retreat, Trump is committed to imposing too much tax on foreign -made products starting April 2 for various reasons.
Fentinel and immigration
Trump has said that he received 20 % of the revenue and 25 % of the rates in Mexico and Canada – and mostly delay – these countries have been prepared to put pressure on these countries to prevent fantasy and illegal immigration in the United States.
Commerce Secretary Howard Lotank has said that repeated delayed revenue, which is now in effect on April 2, will remain until Trump believes countries have made significant progress in preventing fantasy entry.
“If the fiancée is over, I think they will end,” Lotank said on Sunday. “But if the fantasy does not end or is uncertain about it, they will remain as long as they are comfortable. It is black and white. You have to save American lives.
National Economic Council director Kevin Hasett echoed on ABC News “this week” on Sunday.
Meanwhile, Trump has estimated how much money prices may increase.
“We will create jobs with trillions and trillions of dollars as we have never seen before,” Trump told Congress last week. “The revenue is about making the United States rich again and re -making America great.”
“We are going to be so rich that you do not know where they will spend all the money,” Trump said on Sunday.
The committee’s estimation for a responsible federal budget is that Trump’s revenue on China, Mexico and Canada will increase about $ 120 billion and $ 1.3 trillion in a year.
But the problem here is that they are not designed to stay in this long place. If the Trump administration says that if the fantasy problem is resolved, they “come”, we should hope that they will not stay in their place for a decade.
In fact, Hasett said why progress is on Fantinel that Trump has delayed prices twice on Canada and Mexico: “When we have seen them progressing in the drug war, we have rested some of these prices that we put on them because they are growing.”
“I’m telling you, you just look. We’re going to get jobs. We’re going to get open factories. It’s going to be great,” Trump said on Air Force One on Sunday.
To meet this, Trump has often advocated for low taxes and more taxes for goods made abroad.
During his joint address to the Congress, Trump noted one of his important sales for taxes: “We want to reduce taxes on domestic production and all manufacturing.” “If you do not make your products in the United States, however, under the Trump administration, you will pay a price and, in some cases, in a large number.”
This is a carrot and stick approach to trade policy, which Trump says will restore the US manufacturing sector.
“This, along with our other policies, will give our auto industry very rise. Trump said last week that it was on the rise.
Since Trump reminds companies as usual: If you produce products in the United States, you do not receive any tax. But if companies do according to Trump’s asking, the United States cannot increase tariff income.
Loan payments and reducing taxes
At the beginning of his second term, the first steps of Trump had to order the Treasury to determine whether he could set up a “external tax service” to collect tariff revenue to reduce US debt and reduce taxes.
“Donald Trump announced his external tax service, and its purpose is very simple: Eliminating internal revenue service and allowing all overseas to pay,” Lutonk said on Fox News in late February.
In other words: The United States will raise so much money from President Donald Trump’s prices plan that Americans will no longer need to pay income tax.
The problem is that the United States collects about $ 3 trillion every year from income tax, and it also imports $ 3 trillion worth of goods annually. Therefore, this means that the tax on all imported goods to change the income tax will have to be at least 100 %. This is an irrational level that can lead to prices for US consumers.
This will certainly not happen. But higher prices can reduce consumer costs, damage the economy – and try to save manufacturers’ prices.
In his address last week, Trump said, “Almost every country of the earth has been torn for decades, and we will not let it happen more.” “Other countries have used taxes against us for decades, and now it is our turn to start using them against other countries.”
Trump has promised mutual prices on numerous products since April 2, which is similar to the dollar for the dollar to restore trade justice. When more taxes are received on the United States and trade imbalances with other countries, Trump has often wrongly labeled “subsidy” or “loss”.
In his address, Trump said, “In fact, he is receiving hundreds of billions of dollars of subsidy.” “The United States will no longer work.”
Economists agree on a large scale that trade deficit is not loss or subsidy. In fact, they can be a reflection of a strong economy.
Prices are unlikely that the difference of trade with other US countries can be narrowed meaningfully. If that happens, it may be an indication that the cost of US spending is diminishing.
