Paul Ryan, Big GOPe, and U.S. CoC Concede – “Border Adjustment Tax” Dropped From Tax Reform Plan…

Finally today we see a significant loss for the “Big Club”. Speaker Paul Ryan, the GOPe professional business class, Wall Street and the U.S. CoC accept the Border Adjustment Tax is not going to be a part of any larger tax reform agenda under the Trump administration.

Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and President Trump win the policy argument with the removal of the B.A.T.

In a joint statement outlining the forward plans for tax reform the “Big Six” tax negotiators (Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch, House Ways and Means Committee Chairman Kevin Brady), announce the consumer punishing BAT will not be included.

[…] “While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.” (more)

The B.A.T was to revenue collection on imported products and impact on consumers – what the Obamacare mandate was to revenue collection on healthcare and impact on consumers.

The B.A.T  was simply a scheme to embed the cost of renegotiated trade import tariffs, directly onto the consumer, isolated away from any responsibility on the corporation to reduce their own internal efficiencies as a method to keep the price down. It was a dubious and manipulative effort.

Yes, direct tariffs targeted on specific imported goods ‘might‘ and ‘can’ drive the consumer price of the imported good higher.  The price equity is what creates the space for U.S. manufacturers to compete on a level field.

However, importantly, in the free market where price is a key factor in the sale, the originating overseas business will also be under pressure to curb costs through efficiency and other offsets if a higher retail price lowers the consumer demand. This is the natural flow of trade economics.

The Paul Ryan corporate B.A.T. was a technique to avoid any corporation manufacturing imported goods having to take any operational action to offset the tariff. The BAT embeds a tax on the product as a variable offset to all exports by the same corporations.

Example under normal trade Tariff: Widget-Son corporation will pay a 10% U.S. trade tariff when they import flat-screen TV’s to the U.S. market.

Example under the BAT proposal. If Widget-Son Corporation exported the raw material [petroleum (plastic), Minerals (silver), etc] from the U.S., and assembled the finished product overseas, the finished product could return w/out a tariff if the net value of both raw materials and end products was the same.

•Notice #1 – under the B.A.T the value of off-shored manufacturing to the benefit of lower labor costs remains.  The B.A.T was a scheme to work around actual manufacturing incentives in the U.S. (Globalism Wins)

•Notice #2 – under the B.A.T if a parent Corporation (umbrella co. ) crossed industry lines, meaning Father-Widget-Son also owns an agricultural export corporation, the parent company for Widget-Son could use exported value from BIG-Agriculture to offset their Widget-Son TV taxes. (Globalism Wins)

The entire B.A.T construct favored massive multinational corporations who could use export and import offsets to get around taxes, while small U.S. companies would be forced to deal with them.

If you understand the larger scheme within multinational corporations and trade – Explained Here – you can see how the BAT was actually structured to benefit advancement of multinational corporations and multinational banks at the expense of the U.S.

Essentially, the B.A.T retained the exact same scheme that has been ongoing for 30+ years. Global financial exploitation of national markets:

♦Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.
♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.
♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.  (learn here)

Paul Ryan, Mitch McConnell and Orrin Hatch together with their “Big Club” crony capitalistic buddies within the U.S. CoC (Tom Donohue) always have a scheme to work the angles for the multinationals that fund them. However, this time their machinations were blocked by President Trump, Treasury Secretary Mnuchin and U.S. Commerce Secretary Wilbur Ross (and perhaps Cohn too).

WASHINGTON (Reuters) – A Republican proposal in the House of Representatives to institute a border tax on imported items has been killed, party leaders said on Thursday, saying they did so as part of a tax overhaul deal struck between congressional and administration negotiators.

The border adjustment tax was meant to discourage U.S. companies from manufacturing products overseas and then importing them back into the United States for sale. (read more)

Advertisements
This entry was posted in Big Government, Big Stupid Government, China, Decepticons, Deep State, Economy, energy, India, Legislation, media bias, Mexico, NAFTA, President Trump, Professional Idiots, propaganda, Trade Deal, Typical Prog Behavior, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

73 Responses to Paul Ryan, Big GOPe, and U.S. CoC Concede – “Border Adjustment Tax” Dropped From Tax Reform Plan…

  1. Tick Tick Tick…..

    Liked by 5 people

  2. Donna in Oregon says:

    The day after Wisconsin gets Foxconn…..drops the Border tax.

    No quid pro quo here, eh?

    Liked by 29 people

  3. Sylvia Avery says:

    Great win by our side! I’m really happy about this.

    Tom Cochrane. You know, if I were fabulously wealthy I’d hire Fusion GPS to smear Tom Cochrane so that he would be ruined forever.

    Liked by 6 people

  4. aredtailblog says:

    Good riddance.

    More for the memory bank.

    Like

  5. magagirl says:

    This is so great!

    Liked by 6 people

  6. Kristin says:

    Winning again. Two days in a row.

    Liked by 5 people

  7. rhcrest says:

    WOW!!!

    Liked by 1 person

  8. 4sure says:

    The sewer rats will live to fight another day. I’d like to see them completely destroyed.

    Liked by 10 people

  9. sundance says:

    Everything surrounding this current ObamaCare fiasco is entirely related to the economics of Obamacare and not to healthcare.

    The GOPe wing of the UniParty has been paid to retain ObamaCare by the same entities who control the larger multinational controls over the U.S. economy.

    It really is as simple as that.

    Liked by 52 people

    • FofBW says:

      The multinationals want to keep that healthcare line off their financial sheets.

      Liked by 4 people

    • rainy973 says:

      And it sucks.

      Like

    • Payday says:

      So what’s the deal with Murkouski and trump threatening to withhold funding to Alaska? Is there teeth to this?

      Like

      • Warrior1 says:

        Since most of Alaska is actually federal land, i would think that Pres Trump and his Interior Secretary could create many problems for Murkowski. Just saying.

        Liked by 2 people

        • Quite Frankly,Warrior1, I believe POTUS has every right and should make life as miserable as possible for that fraudulent witch (and I’m being kind), Murkowski of Alaska.
          I won’t go listing all of her negatives and her fraudulent write-in election campaign WIN but I know firsthand that write-in campaigns are not winning campaigns in the majority of cases but this is Alaska after all, right?

          Liked by 2 people

    • Tom says:

      If the CONgress would amend the tax code to make all health insurance premiums tax deductible and also allow the formation of insurance groups outside of corporate entities, the advantage of having health insurance paid by your employer would be erased.

      Like

      • carrierh says:

        Company paid insurance didn’t exist before but when they wanted to hire great employees they started offering it as an incentive. Unfortunately every Tom, Dick and Harry that insurance for them should be paid by the employer and it is a huge expense to many companies large and small. We need people to start doing for themselves and not expect any employer to gift them. Many employees are not special either as I have worked with many that should never receive bonuses, paid goodies, etc. So wake up, this was a rigged deal by the establishment creeps on both sides and not warranted, but then again no employee should expect this either.

        Like

    • carrierh says:

      Sundance, exactly as I have been thinking for years and even when I worked outside the USA. Big corporations don’t mind hiring you for a paid corporate position because they own you, they don’t mind giving you huge amounts of money because you have enabled them to make bigger money, escape taxes like Zuckerberg did and undoubtedly many, many large corporation CEO’s/owners, and facilitate whatever the corporation wanted while shafting America, its citizens and its business and economy. Slowly but surely the thieves in and out of Congress are being brought forward to the public view. I agree we need to drain the Congress swamp even if slowly but thoroughly. Thank you Trump for being right there in front and daring them to do these things and making it clear that it will no longer be tolerated. He is our Executive Officer and has the power to get things done! Thank God.

      Like

  10. M33 says:

    Winning!!

    Keep it coming, President Trump!!

    Liked by 5 people

  11. This is awesome, side-note a ton of LARP floating around today on the backside of the netz. Address tonight, possibly?

    Liked by 1 person

  12. Weather Watcher says:

    Thank you President Trump and your Winnng Warriors – God Bless America!!!!! Who needs foreign enemies when we have them right here on US soil, employed by our government in Congress, US CoC and the Speaker of the HOUSE…….I feel an ICE COLD ANGER simmering at the surface.

    Thank you Sundance – I had NO idea this was going on. With your expert analysis and wonderful writing skills – you break down the complex and make it somewhat understandable – my eyes are WIDE open now!!

    On to the next battle Rebel Rouser Warriors!!!!!! With a Rebel Yell she cried MORE MORE..MORE!!!

    Liked by 10 people

  13. Alison says:

    Another PDJT victory on behalf of middle class. Praise be to Mnuchin & Ross for heavy lifting.

    Liked by 14 people

  14. BAT isn’t inherently bad, but you can hide the devil in the details. Trump pointed out a while back that it’s just to complicated to get right, as shown in Sundance’s examples.

    Liked by 8 people

  15. 6x47 says:

    President Trump is forcing the Congress to do it’s job properly. No more letting the lobbyist right the legislation and then rubberstamping it. What’s going on in the Senate with healthcare, and now what’s going on with this package, is the way it is supposed to be. A real give-and-take between legislators and the executive branch such as we have not seen in many, many years. School house rock lives!

    Liked by 16 people

  16. RedBallExpress says:

    I remember during the election when stupid George Will said there were no problems/ there were still TV manufacturers in the US. Turns out some mickey mouse outfit was importing TV’s and packaging them here. He knew it. He just wanted to knock Trump.

    Liked by 14 people

  17. bkrg2 says:

    First, thank you team Trump for stopping this anti MAGA scheme!

    Second, thank you Sundance for another excellent analysis and example

    Many Treepers have mentioned they have difficulty understanding complex finance ans economic topics like BAT. As the CFO in a multi billion global company and almost 30 years of finacial engineering experience, my suggestion is simple:
    If Ryan, McConnell, Odonahue, or other fake Republicans support it, then it is not going to MAGA.

    Liked by 10 people

  18. Enlightened Vulgarian says:

    Money and power. Power and money. The oldest story in human history….

    Liked by 1 person

  19. Joe Clark says:

    I love those pics of Mnuchin and all — LOL!

    Liked by 1 person

  20. dayallaxeded says:

    Whenever Donohue is out of the country, he needs to get renditioned. I’m not like that about anyone else (well, except Soros), but he’s a special case.

    Liked by 3 people

    • Donna in Oregon says:

      Sometimes the slang here throws me. So I look up words to learn. I’m hoping you mean the second noun. Donohue doesn’t deserve Nessun Dorma…. 🙂

      ren·di·tion
      renˈdiSH(ə)n/Submit
      noun
      1. a performance or interpretation, especially of a dramatic role or piece of music.
      “a wonderful rendition of “Nessun Dorma.””
      synonyms: performance, rendering, interpretation, presentation, execution, delivery
      “our rendition of Beethoven’s Fifth”
      2. the practice of sending a foreign criminal or terrorist suspect covertly to be interrogated in a country with less rigorous regulations for the humane treatment of prisoners

      Liked by 1 person

  21. Sedanka says:

    Can’t wait for the day that Sundance gets to post that “Paul Ryan concedes” and it’s not about a Border Adjustment Tax, but about Ryan conceding to his primary opponent. 🙂

    Liked by 5 people

  22. Stringy theory says:

    A win here, a win there, pretty soon we’re talking about real winning, and it’s MAGA! Go President Trump.

    Liked by 1 person

  23. pageoturner says:

    When I saw the White House announcement about the FoxConn plant in Wisconsin I knew Ryan, at least temporarily, got on board the Trump Train. Let’s see how long he’ll stay loyal to the people.

    Liked by 1 person

  24. RobJ says:

    I’ll add Notice #3: The BAT is insanely complicated, requiring an army of lawyers to navigate, when such armies can only be afforded by large multinational corporations, who will then leverage their mobilized lawyers to exploit loopholes in the BAT, and then effectively transfer money from average American consumers to said multinational corporations.

    Liked by 3 people

  25. vfm#7634 says:

    BAT sunk by Wolverines Ross and Mnuchin. Still not tired.

    Liked by 2 people

  26. Janice says:

    I’m just awestruck by Trump and his dream team! How could we have been so blessed as to have these titans fighting for the comman man and the good of America? I am humbled and grateful at God’s goodness to us! MAGA EVERYONE! JUST MAGA!

    Liked by 2 people

  27. MIKE says:

    Sic ’em, Fang!

    Liked by 1 person

  28. Wall approved too!

    Liked by 3 people

  29. Eric Strickland says:

    I am all for a high tarrif and no corporate income taxes. That would encourage production in the US by US companies. Yes, consumers would have to pay a bit more, but the increased employment and income would be worth it.

    Like

  30. Donna in Oregon says:

    President Trump has the rest of his term to tune-up these Swamp creatures. Keep the faith.

    All or nothing? Nope. We’re in an American Renaissance, the Trump era. Some will be getting off the Trump Train at the “Alcatraz of the Rockies” but we’re all going to be riding the same Trump Train…… final destination is MAGA 🙂

    Like

  31. cbjoasurf says:

    Can’t wait for that “BIG, BEAUTIFUL, government SHUTDOWN, President Trump promised us, will be a WONDERFUL “kick in the nuts” for the UNIPARTY AND their benefactors.

    Money, trade, cheap labor, and immigration ENFORCEMENT along with the coming AG SESSIONS indictments of the political elites and justice meted out by “juries of their peers”, real Americans, has me salivating.

    Keep it up President Trump true Americans are behind you 1000% you and your friends can MAGA in spite of the UNIPARTY.

    https://theconservativetreehouse.files.wordpress.com/2017/05/trump-friends-3-e1495075366310.jpg?w=640&h=1042

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s