'Bring the Jobs Back' Through Tax Cuts, Not Tariffs and Deportations | Opinion

The MAGA movement’s core goal of revitalizing American jobs remains strong, but Donald Trump’s reliance on tariffs and mass deportation to achieve this is outdated and counterproductive. These approaches could ultimately harm the very people they intend to help. A smarter, more effective path forward involves strategic corporate tax reform that rewards companies for creating jobs for American workers.

Trump’s affinity for tariffs, despite being a Republican, is puzzling given that they act as a tax ultimately paid by American consumers. During his first term, tariffs increased household costs by several hundred dollars annually. Additionally, tariffs trigger retaliatory measures from other countries, disrupting global supply chains and driving up prices. With inflation now under control, reigniting trade wars would only hurt American wallets and undermine economic recovery.

Another critical flaw of tariffs is their temporary nature. The next administration could dismantle them at any time, making them an unreliable foundation for long-term corporate decisions about reshoring jobs. Companies considering reshoring are hesitant to base major investments on tariffs that could vanish within a few years, rendering tariffs ineffective in promoting lasting job creation.

Similarly, Trump’s mass deportation plans face significant challenges. Deporting millions of undocumented immigrants would incur astronomical costs, estimated at $88 to $315 billion annually, making it one of the largest non-defense discretionary spending items. Additionally, removing millions of workers, especially during a labor shortage, would exacerbate inflation and destabilize the economy.

A more effective solution is to implement corporate tax incentives that reward companies for hiring American workers and investing in domestic facilities. Instead of punishing companies with tariffs, we should encourage positive behaviors by offering incentives. This “carrot” approach, rather than the “stick” of tariffs and deportations, is a far more sustainable way to bring jobs back to America.

This approach would also provide the policy stability necessary for long-term corporate planning. By passing this reform through budget reconciliation, it could be embedded in the tax code, making it resistant to future political shifts. Even Democrats would hesitate to reverse such policies, as it would be politically dangerous to undo tax reforms that promote job growth.

Changing the tax code to reward companies for reshoring jobs would make the economics of American labor more attractive. Companies currently offshore jobs due to the cost advantage of cheaper labor abroad, but adjusting the tax code would make it more profitable to bring those jobs back home. By aligning corporate incentives with national interests, we can make hiring American workers the smart business choice, leading to sustainable job growth.

The economic benefits of this reform would outweigh its costs. Unlike tariffs, which act as a tax on consumers, or mass deportation, which requires massive government spending, this plan would largely pay for itself through increased economic activity and the multiplier effect of higher wages for American workers.

Trump’s vision of rebuilding American manufacturing and prioritizing American workers is valid, but the policies to achieve this must evolve. Strategic tax reform, rather than outdated measures like tariffs and mass deportation, would be the most effective way to bring jobs back to America and ensure lasting prosperity.