Trump tariffs threaten to drown gains from tax cuts

[riversedge]

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Source: the hill.





By Niv Elis - 05/26/19 06:11 PM EDT



President Trump’s escalating trade war with China is threatening to wash away the positive economic effects from his signature tax cuts, which could endanger his reelection prospects.

Trump has regularly pointed to the booming economy as a central reason he believes he will be reelected and credits the tax cuts with boosting output and bringing down unemployment.

But economists say that his latest tariffs are all but canceling out the effects of the tax cuts for all but the wealthiest American families. An additional round of tariffs Trump has threatened in hopes of securing a trade deal with China could tip the scales altogether.

“It’s a very risky strategy,” says Nicole Kaeding, vice president of Federal Projects at the Tax Foundation, a right-leaning think tank.

“The tax cuts and jobs act is pro-growth. It should increase the size of the U.S. economy in the long run and is expected to create jobs. The tariffs, however, move in the opposite direction,” she continued........................................

Read more: https://thehill.com/policy/finance/445492-trump-tariffs-threaten-to-drown-gains-from-tax-cuts

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ah, but these Patriots will gladly swallow any losses.

Or, perhaps Trump will give out more tax dollars as bribes like he is doing for the farmers.

[msongs]

1. my taxes on same income went up, there is nothing to drown at all nt

[More_Cowbell]

2. "Pro-growth"?

Only the most diehard conservative could say that with a straight face. Companies are, as predicted, using their tax savings to buy their own stock back. Companies are not creating more jobs or increasing the salaries of the employees they already have.

[LogicFirst]

3. Tax cuts do nothing for the economy.

They only make the top 2% richer. Economists wear rosy-colored glasses. The rich don't spend the extra money they get to keep; they shelter it off shore.

[rusty quoin]

4. Gains?

[Bernardo de La Paz]

8. Tax cuts for working poor & middle class DO HELP the economy. Poor spend, rich park money. . . nt

[SunSeeker]

5. What "gains"? I'm paying MORE in taxes. And now the tariffs are an additional tax.

[joshdawg]

9. My question exactly.

What gains?
The wealthy gained a lot of money that they can put in offshore accounts and not re-invest in jobs or anything else.
The poorest of us gained the fact that we have to pay for those $^&&%%$^ tax cuts for the wealthiest!

[Billy Ray Joe Bob.]

6. Inflation

I have noticed prices rising on the items I purchase monthly. June first more tariffs go into effect. Strap in folks.

[Aussie105]

7. Politics and economics for the unwary.

You can't expect someone inexperienced in politics and macro economics to understand the nuances and relative effect of different actions.

eg.
1. 'Tax cuts for the top end of town will flow down to workers, everyone benefits.'

Oh, really? Not happening!

2. 'Tariffs on Chinese imports will benefit everyone. China will pay Trillions in tariffs!'

Ignoring backlash tariffs, rising prices for consumers, reduced trade.

But what can you expect, when such matters are in the hands of inexperienced people?

Then there is the 'reverse Midas' touch in effect as well, of course.

The reality is, as noted above, that the tax cuts and tariffs hit the hip pocket of the American consumer. Not that the Bigly Brains in Charge would admit to that.

It will be interesting to see future cost of living estimates, trade and GDP figures.

[no_hypocrisy]

10. Paying double.

1. Tax Cuts -- We're borrowing another $ 1 trillion from China to pay for the "tax cut".

2. Tariffs -- We're going to pay for the tariffs imposed on Chinese manufactured and other goods, not China.

[Yonnie3]

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