6 ms·

Divestment will be a years long process, and it will only happen if we publish a schedule of annually increasing tariffs across all Chinese imports.

FridayoLeary 5y ago
Perhaps it wasn't such a stupid idea after all....
- creato 5y ago
  It wasn't. What was stupid was waging a trade war with Europe at the same time.
echelon 5y ago
Or tax incentivize final manufacture of finished goods in the US for high value and strategic goods (semiconductors, electronics, mechanical equipment, chemicals, pharmaceuticals, agricultural equipment, etc.) Make a policy like, """ Companies that onshore will pay the following taxes for the next 25 years if they follow our onshoring program: company profits: 0% tax rate CEO capital gains: 1% tax rate shareholder capital gains: 2% tax rate Also, companies can transfer international profits back to the US at a rate of up to $10B a year with no taxation. """ First make it apply to 10% or some low critical threshold of products, but then ramp it up annually. Over ten years, the percentage should be closer to 50% for companies to remain in compliance and to receive the tax advantaged status. Don't punish China and make them angry. Reward US manufacturing activities handsomely. Call your legislators and ask for this. They'll be into the tax thing. An interesting side effect: companies that manufacture in the US will be worth significantly more. They can use their valuation to make continued investments: loans, acquisitions, hiring, etc.
- freemint 5y ago
  This is call a subsidy and will really mess up the internal labour market. Not sure it would be legal WTO rules.
  - echelon 5y ago
    That does seem to be a sticking point. Perhaps a new trade agreement could be made amongst key trading partners? China would probably get mad, but if China is able to keep foreign firms out or put them at a disadvantage, then we should be able to provide benefits to our own domestic firms. There need to be motivations for companies to do more on our own soil.

FridayoLeary 5y ago

Perhaps it wasn't such a stupid idea after all....

creato 5y ago
It wasn't. What was stupid was waging a trade war with Europe at the same time.

echelon 5y ago

Or tax incentivize final manufacture of finished goods in the US for high value and strategic goods (semiconductors, electronics, mechanical equipment, chemicals, pharmaceuticals, agricultural equipment, etc.) Make a policy like, """ Companies that onshore will pay the following taxes for the next 25 years if they follow our onshoring program: company profits: 0% tax rate CEO capital gains: 1% tax rate shareholder capital gains: 2% tax rate Also, companies can transfer international profits back to the US at a rate of up to $10B a year with no taxation. """ First make it apply to 10% or some low critical threshold of products, but then ramp it up annually. Over ten years, the percentage should be closer to 50% for companies to remain in compliance and to receive the tax advantaged status. Don't punish China and make them angry. Reward US manufacturing activities handsomely. Call your legislators and ask for this. They'll be into the tax thing. An interesting side effect: companies that manufacture in the US will be worth significantly more. They can use their valuation to make continued investments: loans, acquisitions, hiring, etc.

freemint 5y ago
This is call a subsidy and will really mess up the internal labour market. Not sure it would be legal WTO rules.
- echelon 5y ago
  That does seem to be a sticking point. Perhaps a new trade agreement could be made amongst key trading partners? China would probably get mad, but if China is able to keep foreign firms out or put them at a disadvantage, then we should be able to provide benefits to our own domestic firms. There need to be motivations for companies to do more on our own soil.