Demand

The lower corporate tax rate will allow companies to add manufacturing operations to the US to create jobs and begin to restore the US economy.

No economy expands without demand. Companies respond to increased demand for their products by expanding.

In 2016, US automobile imports totaled $173.3 billion and automobile exports totaled $53.8 billion.

In 2016, US oil imported 10.1 billion barrels per day and exports totaled 5.2 billion barrels per day.

In 2016, the US imported 3 trillion cubic feet of natural gas and exported 2.3 trillion cubic feet of natural gas

In 2016 US imports totaled $2.21 trillion and exports totaled $1.42 trillion.

I expect the trade deficit to be reduced for automobiles because foreign auto makers are likely to add manufacturing plants in the US. This will provide jobs for US citizens.

I expect the trade deficits to be reduced for oil and natural gas, because the US has the capacity and the desire to increase exports. This will also provide jobs for US citizens.

There will be other industries that return their manufacturing operations to the US and they will do this because of the corporate tax cut from 35% to 20%. They too will move their operations to the US based on current US consumption patterns. It makes sense for companies to produce the products consumed by countries to be produced in those countries.

When US companies can repatriate its foreign earnings back to the US, it may likely bring back $2 trillion to $4 trillion. If their US production is trade balanced, they will likely use these funds to pay down their own debt and improve whatever operational or strategic weaknesses they have.

I do not expect that companies will increase jobs until they have established that there is demand for their products.

Norb Leahy, Dunwoody GA Tea Party Leader