Thursday, September 29, 2016

Who says there’s no detail behind Trumponomics? - Bill Weckesser




by Bill Weckesser

Wilbur Ross said: "When evaluated as a single integrated whole, the Trump plan is revenue neutral and fiscally conservative. It grows the economy much faster than Hillary Clinton's plan to raise taxes, increase regulation, stifle our energy sector, and perpetuate chronic trade deficits."

Legendary investor Wilbur Ross and University of California-Irvine Professor Peter Navarro have released a must-read scoring and analysis of Trump’s economic plan.

One of the most shocking takeaways is the assault on the idea that high union wages alone have killed American manufacturing. In what would be music to a union workers ears, Ross and Navarro unravel some of the knot of global taxation. They cite the World Trade Organization, which began overseeing trade in 1995 -- circa NAFTA -- in which all 164 nations have but one vote. Guess who they gang up on? Layer on their explanation of the hidden tariffs at the core of Value Added Taxes (VAT) and it’s no wonder we’ve had lost decades.

Under WTO rules, any foreign company that manufactures domestically and exports goods to America (or elsewhere) receives a rebate on the VAT it has paid. This turns the VAT into an implicit export subsidy. At the same time, the VAT is imposed on all goods that are imported and consumed domestically so that a product exported by the U.S. to a VAT country is subject to the VAT. This turns the VAT into an implicit tariff on American exporters over and above the corporate income taxes they must pay. Thus, under the WTO system, American corporations suffer a “triple whammy”: foreign exports into the U.S. market get VAT relief, US exports into foreign markets must pay the VAT, and U.S. exporters get no relief on any income taxes paid. The practical effect of the WTO’s unequal treatment of America’s income tax system is to give our major trading partners a 15% to 25% unfair tax advantage in international transactions. (While in principle, exchange rates should adjust over time to offset border adjustment, in the near term, exchange rate manipulation leads to major effects on trade flows.)

Fascinating that the Clintons find themselves at the epicenter of these global deals. Next, add in the effects of unnecessary rules and regulations that are often designed more by bureaucrats than legislators. Ross and Navarro see big savings here from common sense reform.

We assume the Trump plan seeks to reduce the current regulatory burden by a minimum of 10% or $200 billion annually. It proposes a temporary pause on new regulations not compelled by Congress or public safety and a review of previous regulations to see which need to be scrapped. Each Federal agency will prepare a list of all of the regulations they impose on American business, and the least critical regulations to health and safety will receive priority consideration for repeal.

As for busting the budget, not so, says Wilbur Ross. 

Wilbur Ross said: "When evaluated as a single integrated whole, the Trump plan is revenue neutral and fiscally conservative. It grows the economy much faster than Hillary Clinton's plan to raise taxes, increase regulation, stifle our energy sector, and perpetuate chronic trade deficits." 

The full text is anathema to globalists. And thus the widespread, top-to-bottom, across the media, big money, elitist, opposition to Trump.


Bill Weckesser

Source: http://www.americanthinker.com/blog/2016/09/who_says_theres_no_detail_behind_trumponomics.html

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