“Members of Congress are getting to work on one powerful Bill that will bring our Country back, and make it greater than ever before. We must Secure our Border, Unleash American Energy, and Renew the Trump Tax Cuts, which were the largest in History, but we will make it even better – NO TAX ON TIPS. IT WILL ALL BE MADE UP WITH TARIFFS, AND MUCH MORE, FROM COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE U.S. FOR YEARS.
-Donald Trump.
Republicans must unite, and quickly deliver these Historic Victories for the American People. Get smart, tough, and send the Bill to my desk to sign as soon as possible. MAKE AMERICA GREAT AGAIN!”
Table of Contents
The Bill
The “Bill” that Donald Trump is referring to in this comment is a speculative or aspirational legislative plan that includes a number of policy objectives. He lays out a general agenda he wants Congress to act on rather than mentioning a specific piece of legislation that has already been developed.
The Aim
The aspirational legislative plan appears to focus on four major areas: border security, ‘boosting morale‘, tax reforms, and tariff-based revenue.
Tax reform is another central aspect, with an emphasis on renewing and potentially expanding the 2017 Tax Cuts and Jobs Act. This includes eliminating taxes on tips, which could directly benefit workers in the hospitality and service industries.
While some parts are positive such as tax cuts , here comes the ugliest part – tariff!
The Ugly Tariffs
Trump’s nationalist perspective on the economy is reflected in his desire to employ tariffs as a significant source of income and a means of punishing nations thought to be exploiting the United States.
However, because it upsets the global economy and raises prices for American consumers and businesses, this tactic is frequently criticized.
“US being a net importer of Chinese Goods, will certainly face a loss if tariffs are slapped again”
Nobody is a Winner in Tariff War
“The trade war between US and China has
– Qi Su, in an SHS-Conference Article
influenced both US and China negatively and there were
never any winners or losers to this game. It’s a lose-lose
situation in any aspect of this case.
Not only between US
and China, the bystander economies, countries from all
over the globe can be influenced by the cold war between
the two massive economies”
Source for Qi Su’s analysis – Qi Su’s Research Thesis
Let History Speak Much Before Rivalry
Oxford Economics reveals that Trade conflict has cut US GDP by an estimated 0.2%-0.4% and raised prices by 0.1%-0.3%.
Also, there are many more research papers indicating negative impact of trade wars on innovation
Since the impact is sure to be negative, the government may not implement it. But if it does, then Inflation is inevitable.
Also read – Trump’s tariff yet again
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