E.J. Antoni

And so it is imperative that we get things like the tax cut across the finish line. And also what I would really like to see from Congress, this isn't just the administration's fault. Congress has been painfully slow to act on this. So I would love to see Congress in the reconciliation process where we get the tax bill through

to include in that process this 10% kind of baseline tariff that the president has put in place, put that into statute, but do it as a border adjustment tax. And that has a lot of different advantages. First, it gives a huge benefit to our exporters, which encourages production here, encourages manufacturing, and encourages American jobs, which is tremendous.

to include in that process this 10% kind of baseline tariff that the president has put in place, put that into statute, but do it as a border adjustment tax. And that has a lot of different advantages. First, it gives a huge benefit to our exporters, which encourages production here, encourages manufacturing, and encourages American jobs, which is tremendous.

But it also puts the tariff only on imports. So you're not going to have Things like the car industry, where a car part may cross the border between the U.S., Mexico, and Canada half a dozen times before it goes into the final car assembly. You don't want that to get hit with a tax every single time. So a border adjustment tax solves a lot of those problems.

But it also puts the tariff only on imports. So you're not going to have Things like the car industry, where a car part may cross the border between the U.S., Mexico, and Canada half a dozen times before it goes into the final car assembly. You don't want that to get hit with a tax every single time. So a border adjustment tax solves a lot of those problems.

And the other great thing, by putting it in statute, is the fact that now you can include that in the calculation of the reconciliation process so that all the revenues can be used to reduce income taxes.

And the other great thing, by putting it in statute, is the fact that now you can include that in the calculation of the reconciliation process so that all the revenues can be used to reduce income taxes.

Well, thank you, Andrew. these different tariffs, which are going to generate revenue. These tariffs are being put in place by the executive and not put in statute by the legislature. They can't be counted in the reconciliation process in terms of revenue that's going to come into the treasury.

Well, thank you, Andrew. these different tariffs, which are going to generate revenue. These tariffs are being put in place by the executive and not put in statute by the legislature. They can't be counted in the reconciliation process in terms of revenue that's going to come into the treasury.

And that's so important because under reconciliation, this is supposed to be a process by which you take an existing budget and you basically just tweak it. And so you're not supposed to have drastic changes to either revenue or expenditures. you're supposed to essentially have no effect. It should even out.

And that's so important because under reconciliation, this is supposed to be a process by which you take an existing budget and you basically just tweak it. And so you're not supposed to have drastic changes to either revenue or expenditures. you're supposed to essentially have no effect. It should even out.

So if we're going to make a change like reducing marginal tax rates on income taxes, which is terrific, that's a great thing. It's exactly what the economy needs. It's what the middle class needs. They need tax relief. But now you're going to need to offset that somewhere. And I understand the fact that there's a law for curve effect here.

So if we're going to make a change like reducing marginal tax rates on income taxes, which is terrific, that's a great thing. It's exactly what the economy needs. It's what the middle class needs. They need tax relief. But now you're going to need to offset that somewhere. And I understand the fact that there's a law for curve effect here.

In other words, as you reduce tax rates, that increases economic activity, which grows your tax base significantly. And if you grow the tax base faster than the tax rate declines, overall tax revenue actually increases. That's what we saw during the first Trump administration. The problem is that's not how the Congressional Budget Office scores it.

In other words, as you reduce tax rates, that increases economic activity, which grows your tax base significantly. And if you grow the tax base faster than the tax rate declines, overall tax revenue actually increases. That's what we saw during the first Trump administration. The problem is that's not how the Congressional Budget Office scores it.

And so you need what they sometimes call an offset to the reduction in personal income tax rates. And a great way to do that would be to take the revenue that's going to come in from a tariff, a border adjustment tax is what we really have. Totally agree.

And so you need what they sometimes call an offset to the reduction in personal income tax rates. And a great way to do that would be to take the revenue that's going to come in from a tariff, a border adjustment tax is what we really have. Totally agree.

And then you can now essentially shift some of the tax burden onto foreigners, which is great from an economic standpoint because there is actually an externality at play here. It is our Navy that patrols the world's sea lanes. It is our Navy at our expense that keeps the ocean safe for international trade. And so it only makes sense that other nations would help pay that expense.

And then you can now essentially shift some of the tax burden onto foreigners, which is great from an economic standpoint because there is actually an externality at play here. It is our Navy that patrols the world's sea lanes. It is our Navy at our expense that keeps the ocean safe for international trade. And so it only makes sense that other nations would help pay that expense.

And a great way for them to do it would be to tax the the very thing that our Navy is supporting, which again, is international trade.