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BREAKING NEWS: GOP Tells Trump He Can Not Tax Companies Just Because They Make Stuff Overseas

“I don’t want to get into some sort of trade war,” Kevin McCarthy

House Majority Leader Kevin McCarthy (R-Calif.) suggested Monday that Republicans would not be in favor of imposing the 35 percent tariff on foreign goods that Trump proposed Sunday in a series of tweets.

 The problem is that Trump, despite his dubious claims to be a billionaire,* is ignorant of the fact that tariffs   are regulated by agreements between countries not by ad hoc rules focused on on specific companies. Congress, not the president, sets tariffs and it is hard to imagine the heavy lift of passing a law focused only on US companies that outsource work. Any such law would be all too easily surmounted by shifting the work to a foreign owned entity as IBM did when it sold its PC business to Lenovo.

 

“I think history has taught us that trade wars are not healthy,” McCarthy said.

 

*Forbes Magazine does not include Mr, Trump in its current list of billionaires.


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