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Ahead of Trump’s trip to Davos, its experts argue that he doesn’t understand trade deficits

“Trade deficits, such as the sprawling gap that exists in trade with China, are a particular subject of ire for the Trump administration, too” reports washingtonpost.com. The president has criticized not only multilateral trade deals such as the North American Free Trade Agreement or the Trans-Pacific Partnership, but also bilateral deals with allies, such as the free-trade agreement with South Korea.Trump, meanwhile, is known for his populist views on trade and criticism of “the false song of globalism.” Indeed, Trump is expected to call for more reciprocal trade deals in a…

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US trade deficit hits $50.5 billion, biggest since 2012

“The United States had run up a $737.4 billion deficit in goods trade through November and had a $223.8 billion surplus in trade in services such as tourism and banking” writes The Associated Press for seattletimes.com. WASHINGTON (AP) — The U.S. trade deficit rose to $50.5 billion in November, the largest imbalance in nearly six years, as imports and exports both hit records.The politically sensitive deficit with China rose to $35.4 billion in November, the biggest goods deficit that the United States runs with any country and the largest monthly…

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What the Decline of Blue Dog Democrats Tells Us About American Politics

“He told me what the fate of the Blue Dogs means for this era in American politics” writes Caroline Kitchener for theatlantic.com. Today’s vote on the tax bill in the House of Representatives broke down along party lines: Not a single Democrat crossed the aisle to vote with Republicans.That polarized result made me wonder what happened to a group that used to be famous for straddling the political center: the Blue Dog Democrats, many of whom voted with Republicans back in 2001 to support George W. Bush’s tax plan. Source: theatlantic.com…

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Blowing Up the Deficit Is Part of the Plan

“The impact of the Trump tax cuts can very easily be the same” writes Julian E for theatlantic.com. But is incorrect to say that large federal deficits only move politics in a rightward direction.Federal deficits have also led Republicans to push for tax increases despite their best political instincts.The legislation raised revenue by $98 billion over three years in response to a looming deficit of $200 billion.The deficit did not disappear in the short term and it remained an issue in the 1992 presidential election. Source: theatlantic.com Share This:

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Why Republicans who once fought budget debt now embrace it

“When did Republicans stop worrying and learn to love budget deficits?” reports foxbusiness.com. As a share of the economy, the national debt would be rising to levels last seen during the height of World War II. This borrowing spree would mark a sharp reversal for Republicans who made a career of sounding the alarm that mounting national debt would ultimately crush the economy and perhaps impoverish future generations.The response suggests that Republican lawmakers are taking it on faith that the tax cuts will generate their own revenue.Treasury Secretary Steve Mnuchin…

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Bob Corker says he’ll vote ‘no’ on tax bill because of deficits

“He had argued that it would be possible to come up with a tax cut that size that paid for itself by generating economic growth sufficient to bring in new revenue to the government, offsetting the tax cut” writes Joseph Lawler for washingtonexaminer.com. Bob Corker announced late Friday afternoon that he would vote against the Senate version of the tax bill because of its impact on the federal deficit, making him the only declared GOP “no” vote on the tax overhaul.The self-described deficit hawk lost a battle within the GOP…

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The one trick the GOP had to make its tax bill look good failed spectacularly

“Unfortunately, this time around the Tax Policy Center (TPC) estimates that not even the magic of dynamic scoring can make this tax bill look good” writes Linette Lopez for businessinsider.com. In Washington, there’s a magical way to make a budget look balanced even when it’s not — it’s called “dynamic scoring.”. Dynamic scoring involves using economic models that supposedly show the effects of fiscal policy like a tax cut on growth.Of course, maybe he didn’t realize what the tax bill would do since his office never actually produced an analysis…

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Fiscal Hawks are endangering tax reform by letting Democrats rewrite history on deficits

“Now, on the precipice of enacting serious tax reform that would also decrease taxes (the other side of the deficit equation), so-called fiscal hawks are balking” writes Mattie Duppler Springer for washingtonexaminer.com. Passing tax reform will spur worker productivity, resulting in wage growth and greater economic certainty.Passing comprehensive tax reform is the most effective and critical way to spur economic growth.Enacting tax reform is the most important thing Congress can do to grow the economy, yet new hesitations are being expressed by lawmakers who worry that the tax overhaul will…

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How Trump’s tax cuts will drive up trade deficits and hurt the Rust Belt

“One good example: he wants tax reform, the bulk of which is aimed at benefitting corporate America” writes Paul Brandus for marketwatch.com. At the heart of Trump’s tax plan is a $1.5 trillion tax cut, which is aimed not at the little guy he always claims to be looking out for, but corporate America.I mentioned above that this is already a great time for corporate America to invest more in this country.These higher interest rates will ripple across our economy, making the corporate investment Trump wants less, not more, likely. Source:…

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Senate tax reform bill would add $1.4 trillion to deficits, economic analysis isn’t available yet: CBO

“The Senate Budget Committee is scheduled to take up the tax bill on Tuesday, a preliminary step before it heads to the floor” writes Joseph Lawler for washingtonexaminer.com. After taking control of the Senate in 2015, Republicans sought to institute macroeconomic analysis for major economic legislation like tax reform.The Joint Committee on Taxation has yet to produce one for the House version of the tax bill, which passed on Nov. 16. Source: washingtonexaminer.com Share This:

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