Question

Choose a particular tax policy that is in place or could be proposed. Explain why this tax policy is a good thing or not. Give specific details on the implications of such a policy.

Answer 1

answer-

The tax policy which i would discuss is current tax related to international trade. This tax policy is called "trump Tariffs" in which President trump impliment this policy as part of "America First" policy.

This policy may sound good but there is nothing good about this policy because First this tax policy create a Trade War between US and China which has affected economy of both the country very bad.

second, other countries started to impose retaliatory tariffs on U.S. goods.

for example- In June 2018, India planned to recoup trade penalties of $241 million on $1.2 billion worth of Indian steel and aluminum, but attempted talks delayed these until June 2019 when India imposed retaliatory tariffs on $240 million worth of U.S. goods.

Canada imposed matching retaliatory tariffs on July 1, 2018.

China implemented retaliatory tariffs equivalent to the $34 billion tariff imposed on it by the U.S.Other countries, such as Australia, expressed concern over the consequences of a trade war.

A May 2019 analysis conducted by CNBC found Trump's tariffs are equivalent to one of the largest tax increases in the U.S. in decades.[Studies have found that Trump's tariffs reduced real income in the United States, as well as adversely affected U.S. GDP

In short, this tax policy have caused lower employment in manufacturing sector, decrease in GDP and political tension between US and other countries.