Trump’s Tariffs Could Add to Prosperity — With Even More Tax Cuts
A windfall of new tariff revenues could be used to slash taxes for Americans.
President Trump’s tariffs could add to prosperity — with even more tax cuts.
Mr. Trump on Wednesday evening gave a vigorous defense of his reciprocal trade policy — saying America will no longer tolerate all of the tariffs and non-tariff barriers constructed by Communist China, the European Union, and many other countries that have prevented American manufacturers from exporting their goods to those countries.
So he is raising the price of foreign imports into America by imposing reciprocal tariff charges on the biggest offenders — along with a 10 percent baseline tariff on everyone.
During his speech at the White House Rose Garden, he showed everyone a chart of all the tariff charges imposed on American exports — charges that have essentially blocked our exports, and charges that have in the main done great damage to American manufacturers, automakers, semiconductors, pharmaceuticals, and other goods.
He’s willing to do business with all these foreign countries. So, if they drop their charges on America — the President will drop his charges on them.
This seems fair minded and common sense.
I thought his chart of all the tariff and tariff related barriers imposed on American exporters was particularly effective.
However, in after-hours trading, the American stock market seems to disagree, falling by 1,100 points as of this report.
One of the biggest issues may be what to do with the newly anticipated import tariff revenues. It could be well over half a trillion dollars a year.
Mr. Trump made no mention of the tariff revenues, but I have a suggestion: use them to slash taxes.
Knock down the personal income tax, the capital gains tax, the corporate tax, perhaps even the Social Security payroll tax. On top of the Trump Tax Cuts 2.0 from last year’s campaign — tax-free tips, overtime, and relief for seniors on Social Security.
This would be a tremendous boon to all Americans, to business and to the goal of a 4 percent economic growth rate and would offset any short term damage from the initial effects of the tariffs.
Just saying.
