Tags: Donald Trump | tax | trade | war | Donald Trump

House Majority Leader: Trump's Tax Threat Could Start a Trade War

Image: House Majority Leader: Trump's Tax Threat Could Start a Trade War

President-elect Donald Trump and President Barack Obama (AP Photo/Pablo Martinez Monsivais)

By    |   Monday, 05 Dec 2016 03:40 PM

President-elect Donald Trump's threat to tax companies that send work overseas is not sitting well with House Majority Leader Kevin McCarthy, R-Calif.

"Today, the best way to make that change is through tax reform," McCarthy said, per a report in the Independent Journal Review. "I think there are other ways to achieve what the President-elect is talking about, but the only way you can do any of this is you've got to have tax reform."

Trump tweeted Sunday the U.S. will substantially reduce taxes and regulations on businesses, but those leaving the country will face consequences.

"Any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. without retribution or consequence, is WRONG!" he tweeted.

"There will be a tax on our soon to be strong border of 35% for these companies . . . Please be forewarned prior to making a very expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS."

McCarthy said Trump's plan could start a trade war.

"I do not want a trade war," McCarthy told reporters Monday, per The Daily Caller. "I do not believe in a trade war; I do not think trade wars are healthy, and I think history has shown us trade wars are not healthy.

"We know that with the size of America and the population around the world that we need trade around the world. But we are currently at a disadvantage based upon the tax code system we have for companies to continue to stay America — from reappropriation to the highest corporate tax rate — those are the ways we solve the problem and grow more jobs in America and not get into a trade war."

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President-elect Donald Trump's threat to tax companies that send work overseas is not sitting well with House Majority Leader Kevin McCarthy, R-Calif.
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Monday, 05 Dec 2016 03:40 PM
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