HOME
​BUSINESS DIRECTORY
INVESTOR LOGIN
INVEST WITH US
Eau Claire Area Chamber of Commerce
  • About Us
    • Ambassadors
    • Board of Directors
    • Buy Local Bucks
    • Chamber Team
    • Committees
    • Communications
    • Contact Us
    • Invest With Us >
      • Chamber Membership at a Glance
      • Chamber Membership FAQs
      • Chamber Online Investor Application
  • Advocacy
  • Workforce
    • Diversity, Equity & Inclusion (DEI)
    • Explore Eau Claire Concierge Program
    • Jobs >
      • Job Board
    • Professional Development
    • Think Eau Claire >
      • Visiting Eau Claire
      • Moving to Eau Claire
    • Workforce Playbook
    • Western & Central Wisconsin Wage Survey
  • Education
    • Chamber Educational Foundation >
      • Leadership Eau Claire™
      • Youth Leadership Eau Claire >
        • Application & Tuition
        • Sponsors
    • Young Professionals (YPCV) >
      • Membership >
        • YPCV Membership Application
      • YPCV Board
      • Calendar of Events
      • YP Cares 2020
  • Investor Engagement
    • Chamber Sponsorships
    • Marketing Opportunities
    • Networking Opportunities
    • Our Newest Investors
    • Invest With Us
    • Investor Login
  • Events
    • Chamber Events Calendar >
      • Signature Events >
        • Breakfast in the Valley
        • Business at the Gardens
        • Business Salutes Eau Claire Golf Classic
        • Eau What a Night/Annual Meeting
    • Community Events >
      • Submit a Community Event
  • Blog

Chamber Blog


The money saved through tax reform will go towards paying for tariffs

8/20/2018

 
Picture
Trade war threatens economic progress​
Speaking on tariffs, regulatory reform and other federal issues of importance to the business community, John Kirchner from the U.S. Chamber spoke at this month’s Eggs & Issues on August 17, 2018 at the Chamber. His message delivered from D.C.: the recently achieved economic growth and positive legislative action comes with the reality that progress is threatened by the trade war. 

Kirchner is the U.S. Chamber’s Executive Director for the Midwest region of Congressional and Public Affairs. He’s responsible for organizing grassroots activities among regional chambers and communicating business needs to federal officials. 

The U.S. economy is growing again
Over the past ten years, the U.S. economy has been growing at a slow rate of less than 3% per year. Over the last couple of quarters the economy has been showing positive signs of growth. Indicators such as a growth rate of over 4%, an unemployment rate of 3.7%, and a wage growth rate of 2.7%, are all signs of a healthier economy. John attributed the economic health to reformed regulatory processes and tax reform.

Reviewing the business regulatory process
According to John, members of Congress have been making less decisions partially due to polarization but also out of fear of losing political power. Federal agencies have then had to fill in the role of decision maker by passing an increasing amount of regulations. Since 1976, federal agencies have introduced over 180,000 regulations. The U.S. doesn’t remove old regulatory rules when new ones are created, so the high number of regulations can act as a weight on business (up until 2017, they were costing businesses $12 billion a year).

This Congress has used the Congressional Review Act more than any other in 2017 to remove 67 regulations from the previous administration. The Act gives Congress the power to do so only for regulations implemented in the last six months of the previous outgoing president’s term since this is when an excessive amount are often employed to accomplish a president’s final political goals. The 67 rolled back regulations will save industry $570.4 million. The U.S. Chamber hopes to have more preventative actions in place by passing the Regulatory Accountability Act which would require an administration to get Congressional approval on any $1 billion or more regulatory rules and for agencies to choose the lowest cost option.

Tax reform
Tax reform passed quickly in December of 2017 after only two and a half months of debate. The last time the U.S. had tax reform was in 1986 under the Reagan Administration. Benefits such as lower corporate tax rates and ending double taxation have worked to the benefit of the economy by increasing U.S. competitiveness. Other countries or regions like Germany and the EU have begun lowering theirs to remain competitive. Additionally, states are seeing the price of services like electricity decrease (e.g. the residents of Main saved $100 million in their electric bills).

For more information on tax reform, visit the U.S. Chamber’s website.

“Don’t let anyone tell you that a tariff isn’t a tax.”
As this administration has had a more business friendly view when it comes to fewer regulations and corporate taxes in comparison to the last, their stance on tariffs and trade has become a pressing issue facing businesses. Earlier this year, President Trump imposed a 25% tariff on steel and a 10% tariff on aluminum under sections 232 and 301 of the Trade Expansion Act of 1962, claiming the action was necessary to protect national security. Steel prices have gone up about 50% and aluminum up anywhere from 10% - 130% since the tariffs were announced. Targeted countries responded with counter-tariffs which have further restricted trade and created a larger economic impact. 

“Don’t let anyone tell you that a tariff isn’t a tax,” John said, arguing that even though they may have been implemented with the goal of protecting the U.S. steel industry and others, the tax dampens economic growth since increased prices in even not targeted industries gets passed down to consumers, and businesses have to lay-off workers to survive. “By our measurements, for every person benefited by these tariffs another 14 are hurt.” Kirchner said that the money businesses saved through fewer regulations and lower taxes will be going to pay for the tariffs. For example, Ford Motor Company saved $208.4 million from the tax cuts alone, but the projected cost of the tariffs will be $509 million in 2018 for the company.

Some have argued that the tariffs are part of a short-term negotiation strategy to make better trade deals. John noted that if you take into account the Administration’s discussion over adding $350 billion more in tariffs on the auto/auto parts industry and $200 billion more targeting China and the President’s history of praising tariffs, it’s likely that the tariffs are here to stay longer than most anyone would like. 

How the tariffs are impacting the local economy ​
Picture
The tariffs do have a large impact on the national economy since one-half of manufacturing and one-third of farmland in the U.S. rely on trade, but the Wisconsin’s economy is also greatly impacted since its economy is so largely based on manufacturing and agriculture. 800,800 jobs in the state are supported by trade. Fluctuations in trade don’t just impact larger employers; 87% of the state’s exporters are small or medium sized. Local businesses have shared the tariffs’ impacts at home at a round table with Representative Kind at the Chamber on August 7. Read what they are up against and what is being done to advocate for business, here. 

​Other information: John Kirchner's PowerPoint from Eggs & Issues, State-by-state analysis of the tariffs' economic impact (U.S. Chamber), Mixed review for Trump policies from U.S. Chamber of Commerce official in Eau Claire (Leader-Telegram), Eau Claire Chamber's Eggs and Issues discusses trade war and international tariffs (WEAU 13 News)

Posted by: Kaylee Tracy, Legislative & Workforce Development Intern
​tracy@eauclairechamber.org

Comments are closed.

    Categories

    All
    Advocacy
    Awards & Recognitions
    Business Of The Week
    COVID 19 Information
    Leadership Eau Claire™
    Programs
    Ribbon Cuttings & Groundbreakings
    Small Street Journal
    The Perspective
    Workforce Development
    Young Professionals Of The Chippewa Valley
    Youth Leadership Eau Claire

    Eau Claire Chamber

    The Eau Claire Chamber of Commerce has more than 1,200 members.

    Archives

    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015

    RSS Feed

Picture
Find Us
Facebook
LinkedIn
​Twitter
Contact Us 
101 N Farwell St, Ste 101
Eau Claire, WI 54703
 Phone: (715) 834-1204
Fax: (715) 834-1956
​information@eauclairechamber.org 
Picture

​Copyright © 2020 Eau Claire Area Chamber of Commerce. All rights reserved.
​Privacy Policy

101 N. Farwell Street - Suite 101, Eau Claire, WI 54703
Phone: (715) 834-1204 |  Fax: (715) 834-1956  |   information@eauclairechamber.org
  • About Us
    • Ambassadors
    • Board of Directors
    • Buy Local Bucks
    • Chamber Team
    • Committees
    • Communications
    • Contact Us
    • Invest With Us >
      • Chamber Membership at a Glance
      • Chamber Membership FAQs
      • Chamber Online Investor Application
  • Advocacy
  • Workforce
    • Diversity, Equity & Inclusion (DEI)
    • Explore Eau Claire Concierge Program
    • Jobs >
      • Job Board
    • Professional Development
    • Think Eau Claire >
      • Visiting Eau Claire
      • Moving to Eau Claire
    • Workforce Playbook
    • Western & Central Wisconsin Wage Survey
  • Education
    • Chamber Educational Foundation >
      • Leadership Eau Claire™
      • Youth Leadership Eau Claire >
        • Application & Tuition
        • Sponsors
    • Young Professionals (YPCV) >
      • Membership >
        • YPCV Membership Application
      • YPCV Board
      • Calendar of Events
      • YP Cares 2020
  • Investor Engagement
    • Chamber Sponsorships
    • Marketing Opportunities
    • Networking Opportunities
    • Our Newest Investors
    • Invest With Us
    • Investor Login
  • Events
    • Chamber Events Calendar >
      • Signature Events >
        • Breakfast in the Valley
        • Business at the Gardens
        • Business Salutes Eau Claire Golf Classic
        • Eau What a Night/Annual Meeting
    • Community Events >
      • Submit a Community Event
  • Blog