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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (293932)	7/25/2024 10:03:03 AM
From: Thomas M.	2 Recommendations Recommended By Bill longz Respond to of 361094

Economic Model Shows 10% Universal Tariff Would Raise Incomes, Pay for Large Tax Cuts for Lower and Middle Class The tariff would generate an estimated $263 billion, which could be used to provide a substantial $1200 tax refund to lower-income households and refunds of 3%-4% of income for middle-income households. Real household incomes rise by 5.7%, equivalent to $4,252, making workers better off and which more than offsets a small, initial price impact of half a percentage point per year. The Coalition for a Prosperous America (CPA) today released a new economic analysis showing that a global 10% tariff on all U.S. imports would generate U.S. economic growth, increase real wages, increase employment, and raise additional revenue to lower taxes for lower- and middle-class Americans. “Our analysis finds that a 10% tariff would stimulate domestic production and raise economic growth to produce a 5.7% increase in real income for the average American household,” said CPA Chief Economist Jeff Ferry. “Further, the $263 billion raised in tariff revenue could be used to provide tax refunds to all households with income below $1 million a year, creating a progressive tax refund.” CPA’s economic model shows that consumers would see no meaningful price increases as a result of the 10% global tariff. CPA’s analysis finds that consumer prices would rise by about half a percent per year over an anticipated six year adjustment period, for a cumulative total of 3.26% as a result of the economic stimulus from the tariff package. This is a one-time price increase, as the increased demand for goods and services raises both output and prices. This modest price increase matches the experience of consumer prices in the period 2018 to early 2020 (before the onset of the COVID pandemic), when consumer price increases were virtually undetectable following the imposition of the Trump tariffs which began in the first quarter of 2018. Earlier this year, U.S. Treasury Secretary Janet Yellen said that the Section 301 tariffs on Chinese goods would not raise consumer prices. Similarly, National Economic Council Director Lael Brainard reiterated the importance of the Section 301 China tariffs to avoid a China Shock 2.0. “More economists have come round to the view that trade policy is necessary to defend and promote high-value manufacturing industries in the U.S. in light of the efforts by China and other low-wage countries to export their way to growth,” said Ferry. “Economists have known since 1941 that so-called free trade is not win-win and specific policies are necessary to promote economic growth and avoid income inequality in the modern world.” prosperousamerica.org Tom