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842 points putzdown | 1 comments | | HN request time: 0.208s | source
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kotaKat ◴[] No.43692997[source]
Missing reason #15: commercial lenders with a brain realize that these tariffs and this self-imposed domestic crisis will dissipate in the next ~6 years. Nobody's going to lend in this market to try to spin up a new greenfield project in the US that will take years to get operational when they can sit and ride it out - ESPECIALLY at these interest rates.
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potato3732842 ◴[] No.43693282[source]
I'm not so sure.

The tariffs most certainly will dissipate but we can't discount the chance that they may be replaced with actual written in law voted on by congress and signed by the president taxes that have similar but much more durable effects.

Manufacturing and heavy industry really hates off-shoring. They only do it because the sum total of other policy makes it the only viable option. I can see them taking a decent haircut in pursuit of some longer term goal.

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Workaccount2 ◴[] No.43693588[source]
I have a suspicion that the coming tax cuts will be extreme, and the gaps in critical funding will be covered with tariff income. This will essentially make tariffs a cornerstone for government finances.

Political suicide to roll back tax breaks if they are primarily for the <$150k earners, like trump wants.

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FireBeyond ◴[] No.43695950[source]
> Political suicide to roll back tax breaks if they are primarily for the <$150k earners, like trump wants.

What tax breaks has he aimed at these people beyond some of the overtime and tipping (which is expected to only equate to about $2K)?

Instead:

>The largest tax cuts would accrue to the highest-income families, the Treasury said.

> Household in the top 5% — who earn more than $450,000 a year, roughly — are the “biggest winners,” according to a July 2024 analysis by the Urban-Brookings Tax Policy Center. They’d get over 45% of the benefits of extending the Tax Cuts and Jobs Act, it said.

> A Penn Wharton Budget Model analysis on the impacts of the broad Republican tax plan had a similar finding.

> The bottom 80% of income earners would get 29% of the total value of proposed tax cuts in 2026, according to the Wharton analysis, issued Thursday. The top 10% would get 56% of the value, it said.

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Workaccount2 ◴[] No.43696537[source]
I don't know what tax plan that is an analysis of, but Trump has stated he wants to eliminate income tax for those under $150k.

I don't know what news source you trust, but if you google it, he stated it back in March.

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1. Kirby64 ◴[] No.43707362[source]
It's already stated in the source quote. Extending the TCJA.

What he says is almost irrelevant to what he actually does most of the time. He 'says' he wants to lower taxes on the lower income folks, but the tax bill he actually passed was essentially a handout to wealthy and businesses. He 'says' he wants to bring back manufacturing, but the reality is his tariff actions do nothing of the sort.