Trump is about to pull off one of the biggest transfers of wealth in history and Texas will lose
For 30 years, Texas has been on the winning side of history, getting downright rich off the global trading system that arose after the Cold War. Now, that wealth is about to be taken away in one of the greatest smash-and-grabs in U.S. history.
The Trump administration has drawn plenty of attention for plenty of reasons. But the lynchpin of the Trump era is a tax increase at the border. Called lots of things, it is simply a tax on corporations that import from abroad. The House Republican version is a 20 percent tax that would be the basis of the corporate tax code and pay for, well, everything on the Trump agenda, like the border wall.
It sounds innocuous at first, really, but taxes are a transfer of wealth by a fiat of government. And the wealth has to go from someplace to someplace else. The border tax would transfer an estimated $1 trillion from corporations that import goods and services, namely in the big trading and border states, and Texas is at the top of that list. This wealth would then be divided between government in Washington and legacy manufacturers, largely clustered in the less competitive American Midwest.
The results? The Texas boom would be dealt a serious body blow, felt not just in Laredo and El Paso, but Houston, San Antonio, Dallas, Fort Worth and everywhere in between. Consumers everywhere would face higher prices for everything: gasoline, jeans, food -- unless, frankly, a pair of never-before-witnessed miracles occurs. It is the riskiest gambit with the American economy since the tariffs that triggered the Great Depression.
Read more: http://www.dallasnews.com/opinion/commentary/2017/03/08/trump-pull-one-biggest-transfers-wealth-history-texas-will-lose
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