Trump Wants a Win, But This Tax Plan Is a Loser
Starting a trade war wouldn't be pleasant.
Photographer: Ty Wright/BloombergNow that President Donald Trump has failed to repeal and replace the Affordable Care Act, he’s turning to tax cuts to get a much-needed political win. There’s just one problem: What the Republicans want violates international law. If the reform bears any resemblance to the leading proposal, favoring corporate exports over imports, it’s going to get the U.S. sued in the World Trade Organization -- where it will lose.
It’s conceivable that Republicans won’t care about the defeat or the trade sanctions from other countries that the tax plan would likely bring. But ignoring the real-world consequences of the proposed reform would be self-destructive. It won’t mean a win for the Trump administration, not even the short term.
