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Trump’s new economic war
Trump’s new economic war
Saudi Arabia and other producers must cut oil prices, global central banks “immediately” needed to slash interest rates, and foreign companies must ramp up investments in US factories or face tariffs. The EU — which came in for particular opprobrium — must stop hitting big American technology companies with competition fines.
Trump’s demands came amid a frenetic first week in office in which the president launched a blitzkrieg of executive orders and announcements intended not just to reshape the state but also assert America’s economic and commercial supremacy. Tariffs of up to 25 per cent could be slapped on Canada and Mexico as early as February 1, riding roughshod over the trade deal Trump himself negotiated in his first term.  China could face levies of up to 100 per cent if Beijing failed to agree on a deal to sell at least 50 per cent of the TikTok app to a US company, while the EU was told to purchase more American oil if it wanted to avoid tariffs. Underscoring the new American unilateralism, Trump pulled the US out of the World Health Organization, as well as exiting the Paris climate accord for a second time.
This proposal throws a “hand grenade” at international tax policymaking, says Niels Johannesen, director of the Oxford university Centre for Business Taxation at Saïd Business School. The move suggests a determination to “shape other countries’ tax policy through coercion rather than through co-operation”, he adds.
“Those around Trump have had time to build up a systematic, methodological approach for protectionist trade policy and it shows,” says former UK trade department official Allie Renison, now at consultancy SEC Newgate. The approach will be to build up a case file of “evidence” against countries, she says, and then use it to extract concessions in areas of both economic and foreign policy.
The question remains how far Trump is willing to go. The danger of trampling on the rules-based order, says Jeromin Zettelmeyer, head of the Bruegel think-tank, is a complete breakdown in the diplomatic and legal channels for settling international disputes. If Trump were to pull out of a wider range of international frameworks, such as the WTO or the IMF, he warns, then the arrangements that help govern the global economy could get “substantively destroyed”.
Some caution against being awestruck by Trump’s threats or his espousal of capitalism without limits, because his agenda was so incoherent. “What we are seeing is huge doses of American hubris,” says Arancha González, dean of the Paris School of International Affairs at Sciences Po. “We are blinded by the intensity of all the issues put on the table and by Trump’s conviction. But we are not looking at the contradictions. It’s like we are all on an orange drug
·archive.is·
Trump’s new economic war
The IRS Takes a Welcome Step Into the 20th Century
The IRS Takes a Welcome Step Into the 20th Century
the IRS has hitherto set up neither a direct-filing system nor an automatic one, because of lobbying and conservative ideology. Intuit and its ilk have pressured both Congress and the IRS to head off such systems, and then taken the resulting profits to lobby for the tax code to be made more complicated, so ordinary Americans are even more tempted to pay to avoid the headache. One particularly evil objective in this area has been to make claiming the Earned Income Tax Credit as complex as possible, to prey on poor people who tend not to have the skill or time to fill out difficult forms. Roughly between 13 and 22 percent of EITC benefits are gulped down by tax prep companies.
·prospect.org·
The IRS Takes a Welcome Step Into the 20th Century
Pluralistic: The IRS will do your taxes for you (if that’s what you prefer) (17 May 2023) – Pluralistic: Daily links from Cory Doctorow
Pluralistic: The IRS will do your taxes for you (if that’s what you prefer) (17 May 2023) – Pluralistic: Daily links from Cory Doctorow
Inuit is a freaky company. For decades, its defining CEO Brad Smith ran the company as a cult of personality organized around his trite sayings, like "Do whatever makes your heart beat fastest," stenciled on t-shirts worn by employees. Other employees donned Brad Smith masks for selfies with their Beloved Leader.
the cartel sabotaged Free File from the start. They blocked search engines from indexing their Free File services, then bought Google ads for "free file" that directed searchers to soundalike programs ("Free Filing," etc) that hit them for hundreds of dollars in tax-prep fees. They also funneled users to versions of Free File they were ineligible for, a fact that was only revealed after the user spent hours painstaking entering their financial information, whereupon they would be told that they could either start over or pay hundreds of dollars to finish filing with a commercial product.
"e-file…is wholly redundant": Well, no, Rick, it's not redundant, because there is no existing Free File system except for the one your corrupt employer made and hid "in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying 'Beware of the Leopard.'"
"nothing more than a solution in search of a problem": The problem this solves is that Americans have to pay Intuit billions to pay their taxes. It's a tax on paying taxes. That is a problem.
Now I want to address the reply guys who are vibrating with excitement to tell me about their 1099 income, the cash money they get from their lemonade stand, the weird flow of krugerrands their relatives in South African FedEx to them twice a year, etc, that means that free file won't work for them because the IRS doesn't actually understand their finances. That's a hard problem, all right. Luckily, there is a very simple answer for this: use a tax-prep service. Actually, it's not a hard problem. Just use a tax-prep service. That's it. No one is going to force you to use the IRS's free e-file. All you need to do to avoid the socialist nightmare of (checks notes) living with less red-tape is: continue to do exactly what you're already doing.
·pluralistic.net·
Pluralistic: The IRS will do your taxes for you (if that’s what you prefer) (17 May 2023) – Pluralistic: Daily links from Cory Doctorow
Dirt: Coping with things
Dirt: Coping with things
Coping with things is the prevailing mood in my corner of the universe. As I write this, America has just completed an election in which many people voted primarily for the idea of voting. The prevailing candidate? Less an individual than an avatar of civility and liberalism.
We are a country founded on an idea and not an identity.
Americans have a way of obscuring reality through grand symbolism and none of the accompanying semiotic rigor. As if the facade of democracy can be upheld by not looking too closely at increasingly undemocratic outcomes — our high tolerance for multiculturalism tenuously predicated on everyone struggling equally. The difference between idea and identity is both our saving grace and our downfall. Democracy: watch the gap.
The idea of the American individual, part of the national optimism that fueled the Space Race, is far less prominent than the citizen-consumer. Attaining a degree of celebrity, still a coveted means to financial stability, thrusts one into the category of “celebrity,” where image overtakes personhood.
Lifestyle, like work, is something we can only see in aggregate. Technological gains don’t relieve the pressure for ownership; they merely reinforce it.
·dirt.substack.com·
Dirt: Coping with things