May 13, 2019

ONLY DONALD CAN STALL THE OBAMA BOOM:

Trump's Trade War Escalation Will Exact Economic Pain, Adviser Says (Jeanna Smialek, Jim Tankersley and Mark Landler, May 12, 2019, NY Times)

Analysts at the Tax Foundation, a Washington think tank that forecast a large increase to economic growth from the tax cuts Mr. Trump signed in 2017, now say that the tariffs the president has put in place or threatened -- and the effects of Chinese retaliatory tariffs on American exporters -- would more than cancel out all the economic benefits of the tax law.

"The tariffs, if allowed to continue, will mute the economic benefits of tax reform," said Nicole M. Kaeding, a Tax Foundation economist -- particularly for low- and middle-income consumers who will be stuck paying higher prices. "Economists argue about many things, but the impact of tariffs on the economy is not debated. They are harmful."

Many of those groups say growth would be even stronger this year if Mr. Trump had reached a deal with China and averted a prolonged government shutdown. They blame Mr. Trump's fundamental misunderstanding of tariffs -- which he believes are lifting the economy -- for driving the country into a danger zone.

Posted by at May 13, 2019 4:12 AM

  

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