Tuesday, April 25, 2017

Trump Is Said to Abandon Border Tax

 The Trump administration has dropped any support for a so-called border adjustment tax on imports, reports Kate Kelly for The New York Times.

The tax was intended to be the keystone of a tax "reform" proposal developed by Republican leaders in the House of Representatives. But it faced immense pushback from influential companies including Walmart and Toyota.

If enacted, a border adjustment tax would have effectively imposed significant levies on billions of dollars of imported goods. Retailers in particular would have been hard hit, as products ranging from tires to T-shirts, which are imported from overseas, would have suddenly cost more. Automakers and other manufacturers that rely heavily on foreign parts and supplies would have also been hit.

Since Trump is about to announce on Wednesday cuts in corporate taxes and individual taxes without any cuts in net government spending, it remains to be seen how he will fund the new gap.

It is possible he could sneak in other taxes, allow the budget deficit to explode or generate revenue from imports on an ad hoc basis via tariffs.

It's possible it will be a combination of all three.

-RW 

7 comments:

  1. Foreign aid would be a good starting point to find some extra cash.

    ReplyDelete
  2. Instead of deporting illegals, just sell them off to the highest bidder. Use the revenues to cover the gap.

    ReplyDelete
    Replies
    1. Re: Paul Hansen,

      What 'gap' are you referring to? He could reduce spending.

      Delete
  3. Was the fact that Trump was just another presidential pussy in doubt? Open your eyes people they dont call this country a Neo-fuedalistic Oligarchy for nothing!

    ReplyDelete
    Replies
    1. Yes. Damn you Trump for not imposing a new tax on me!

      Delete
    2. Exactly, my first memory of a president is Reagan (sellout) and the litany of clowns that have followed. I think it was Einstein who said that insanity is doing the same thing over and over and expecting a different result.

      Delete
  4. Didn't he float the idea of debt default at one point early in the campaign? Maybe he has a secret plan to cut taxes, run up the debt, then default. I'd certainly prefer that to more taxes, since it would shift the costs from the victimized taxpayer to the treasury holders who chose to bankroll the state. Even better, it would ruin the federal government's credit and hamper future borrowing.

    Surely wishful thinking though. TPTB would never allow it, would they?

    ReplyDelete