Trump Closes the TPP Door. Republican Border Tax Debate. @MaryKissel, @WSJ.

Jan 24, 2017, 05:13 AM

01-23-2017 (Photo: File:Secretary Kerry Participates in the TPP Meeting with Nations' Leaders (10152830624)) http://JohnBatchelorShow.com/contact http://JohnBatchelorShow.com/schedules http://johnbatchelorshow.com/blog Twitter: @BatchelorShow

Trump Closes the TPP Door. Republican Border Tax Debate. @MaryKissel, @WSJ.

Fulfilling a campaign pledge to end American involvement in the 2015 pact, Trump signed an executive order in the Oval Office pulling the United States out of the 12-nation TPP. Trump, who wants to boost U.S. manufacturing, said he would seek one-on-one trade deals with countries that would allow the United States to quickly terminate them in 30 days "if somebody misbehaves." "We're going to stop the ridiculous trade deals that have taken everybody out of our country and taken companies out of our country," the Republican president said as he met with union leaders in the White House's Roosevelt Room. The TPP accord, backed heavily by U.S. business, was negotiated by former Democratic President Barack Obama's administration but never approved by Congress. Obama had framed TPP, which excluded China, as an effort to write Asia's trade rules before Beijing could, establishing U.S. economic leadership in the region as part of his "pivot to Asia." China has proposed a Free Trade Area of the Asia Pacific and has also championed the Southeast Asian-backed Regional Comprehensive Economic Partnership.

http://www.reuters.com/article/us-usa-trump-business-idUSKBN1571FD

The House tax plan and its border-adjustment plan drew minimal notice when released in June. But after Donald Trump won the presidency, companies and investors began trying to calculate the effects of the tax plan—which also lowers the tax rate, allows immediate writeoffs of capital investment and denies most deductions for interest. Retailers, oil refiners and other importers are warning the plan would cost them billions of dollars and force them to raise consumer prices. The proposal’s advocates say those fears are overstated because currency adjustments would offset the tax change. A rising dollar would keep the real price of imports about the same and preserve the existing trade balance, though consumers and American owners of foreign assets could bear new costs. In the long run, companies would locate more production in the U.S. Now, if you’re so inclined—and you know you are—you can follow along at home. The Open Source Policy Center, an arm of the conservative-leaning American Enterprise Institute, has built a “Border Adjustment Calculator.”

http://blogs.wsj.com/economics/2016/12/26/republicans-radical-new-business-tax-proposal-simplified-sort-of/