A 10% “universal” tariff on all U.S. imports, combined with a schedule of income tax cuts would generate economic growth of $728 billion and 2.8 million additional jobs, according to the CPA economic model of the U.S. economy.
When asked about China, both Trump and Biden should say that China’s trade surplus is an insult to the world and a huge disruptor to our economy.
CPA’s chief economist Jeff Ferry joined two other panelists Wednesday to talk trade in an hour-long webinar by Industry Week magazine titled the “2024 Manufacturing Economy First Half Checkup.”
Last week, Republicans and Democrats from the Senate’s Joint Economic Committee squared off against each other – with one side arguing in favor of industrial policy programs like the Inflation Reduction Act – and the other side arguing in favor of lower corporate taxes.
Treasury Secretary Janet Yellen faced a round of questioning that saw the Democrats applaud her, and the Republicans admonish her for a little over two hours during Tuesday’s House Ways & Means Committee hearing.
The legislative package will end tax breaks for Chinese stocks, restrict sanctioned Chinese companies’ access to U.S. capital markets, increase transparency on risks to American corporations, and reduce exposure to these risks for retail investors and other Americans saving for retirement.
“Our tax code is supposed to support American manufacturers in building out genuine domestic supply chains. It shouldn’t be exploited by the Chinese Communist Party,” said Brown.
In January, the House of Representatives will vote on whether or not to close the current “water’s edge” loophole written into state tax law.
Congress must act to prohibit Chinese companies from receiving Inflation Reduction Act tax credits.
Chinese solar manufacturers could take advantage of the Inflation Reduction Act’s tax credits by opening plants in the United States.
