Artis Real Estate Investment Pref Shs Series E ARESF

Trump

[Torontojay]

Is planning on putting a 60% + tariff on China and about a 20% tariff on everyone else. This is effectively a tax that foreign entities  have to pay to do business with the United States. If we hold everything else constant, then this is estimated to reduce the deficit by almost $ 1 trillion which effectively negates the interest payments on the national debt. The current $ 2 trillion deficit would shrink to $ 1 trillion ceterus paribus. On the flip side, the American people will pay the price with higher priced items for things that they usually buy. Think Wal-mart or Home Depot. Almost everything comes from China. This will push inflation higher at the consumer level and lower at the government level. Ok so what comes next? Let’s talk about this in terms of the money supply. If you shrink the government deficit then this has the same effect of lowering the money supply. This is disinflationary if and only if the government pays down its debt. How do we solve the inflation at Home Depot or Wal-mart? One explanation is corporate tax cuts. If tax decreases, then the money supply will grow by the net amount of taxes not owed to the government. The idea behind corporate tax cuts is that they could pass these savings to individuals which can now afford higher priced items at the store. It’s all about controlling the money supply. If tariffs offset corporate tax savings, then the money supply would remain the same if we hold everything else constant. 

 

One thing is clear, the US is on an unsustainable path that can only be solved through higher taxes or lower government spending. 

[DZtrader]

Not to poke holes in your theory but:.............................60 percent to China very unlikely, a tax that "foreign entities" have to pay, no not really, disinflationary if and only if the government pays down its debt, don't bet the grocery money on that, maybe possibly a minute fraction would go to debt service, the idea behind corporate tax cuts is they could pass these

[tylerreddick]

" Is planning on putting a 60% + tariff on China and about a 20% tariff on everyone else. This is effectively a tax that foreign entities  have to pay to do business with the United States. " I am surprised that anyone would repeat that lie that Trump keeps spewing. American consumers pay for tariffs, not foreign exporters.

[Torontojay]

  And corporate tax cuts goes back to China or does it stay in America? What do you think will happen to profits of American companies when their tax bill goes down? Inflation moves higher but so does their wages.  Real wages has everything to do with the productivity of the economy as measured by output per hour. If you are more productive, your purchasing power increases as does

[tylerreddick]

"And corporate tax cuts goes back to China or does it stay in America" Now you are just being an idiot.

[Torontojay]

You are the idiot.  Im well qualified on the subject and I don't need Trump to teach me how to think.  Thank god for democracy.   

[Frankie10]

Calling other people idiots... you feel the need to say you're qualified... on a board you have no reason spending time on*. In the words of the president elect: "sad". *no long or short position

[Torontojay]

 It's ok for him to call me that? I'm only defending myself here. Typical anti Trump rhetoric by some board members that have no idea what they're talking about.       

[tylerreddick]

Make an idiotic statement, good chance someone will call you on it.