FAREWELL FREE MARKET: Trump Vows To Impose 35% Tax On US Goods Made In Overseas Factories

December 4, 2016 Business, News, Teabagistan

Roll Call reports:



Donald Trump on Sunday morning tweeted that he intends to slash business taxes and regulations, but the early rising president-elect again warned companies that move all or parts of their operations offshore will face “retribution or consequence.”

In a series of tweets that kicked off at 6:41 a.m., Trump said he will impose “a tax on our soon to be strong border of 35% for these companies.” He followed that advising companies to be “forewarned” before moving operations offshore, saying such a move would amount to an “expensive mistake!”

His threats suggested the envisioned taxes on items coming into the United States made by American firms outside the U.S. would, at least partially, offset any savings companies achieve via lower wages and operating costs abroad.

They also suggest an administration that could take the GOP away from free-market capitalism, and seem based on an assessment that the market no longer knows best. So far, Trump is signaling he knows best and will ignore market forces, opting for using a heavy hand to change companies’ behavior.

Trump often uses Twitter to set the day’s media narrative, with the Sunday morning posts coming as producers and hosts were making final Sunday morning talk show preparations. The Twitter blasts marked the second time in four days he has issued the warning to American companies.

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