Page 21 - The South China Business Journal
P. 21
ions compare historically. Tariffs of the trade deficit. Furthermore,
were an important revenue source for these actions undermine other policy
thousands of years, including through accomplishments. One estimate from the
most of America’s early history. Tax Foundation is that the full impact of
Commerce was channeled through these trade actions could offset roughly
ports and border crossings, making for a a third of the growth from the Tax
convenient point for administration and Cuts and Jobs Act. For some firms, the
collection. But with modernity came a benefits of tax reform would be gobbled
vastly expanded ability to collect taxes, up several times over.
and so tariffs’ prominence dissipated
along with their deleterious distortions Whether our goal
to trade and economic activity. is to secure greater
intellectual property
Since World War II, customs duties rights from trading
collected as a share of GDP have partners like China, or
remained within a narrow band. The simply to export more
U.S. raised $32 billion in duties in 2016. goods and services,
To put this in context, our country a trade war with our
raised more than $1.5 trillion from trading partners
personal income taxes that same year. represents a sharp shift
Recent actions would spike duties from prior policy and one
collected by an additional $145 billion, unlikely to achieve the
according to the Tax Foundation. That’s administration’s goals.■
a massive increase, which would be a
radical shift from prior policy, as seen in
the chart below.
The U.S. Chamber has
repeatedly argued that the current
approach to trade may result in less
domestic production and a worsening
South China Business Journal 19
were an important revenue source for these actions undermine other policy
thousands of years, including through accomplishments. One estimate from the
most of America’s early history. Tax Foundation is that the full impact of
Commerce was channeled through these trade actions could offset roughly
ports and border crossings, making for a a third of the growth from the Tax
convenient point for administration and Cuts and Jobs Act. For some firms, the
collection. But with modernity came a benefits of tax reform would be gobbled
vastly expanded ability to collect taxes, up several times over.
and so tariffs’ prominence dissipated
along with their deleterious distortions Whether our goal
to trade and economic activity. is to secure greater
intellectual property
Since World War II, customs duties rights from trading
collected as a share of GDP have partners like China, or
remained within a narrow band. The simply to export more
U.S. raised $32 billion in duties in 2016. goods and services,
To put this in context, our country a trade war with our
raised more than $1.5 trillion from trading partners
personal income taxes that same year. represents a sharp shift
Recent actions would spike duties from prior policy and one
collected by an additional $145 billion, unlikely to achieve the
according to the Tax Foundation. That’s administration’s goals.■
a massive increase, which would be a
radical shift from prior policy, as seen in
the chart below.
The U.S. Chamber has
repeatedly argued that the current
approach to trade may result in less
domestic production and a worsening
South China Business Journal 19
