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Research

The CPA is Washington’s leading organization fighting for a new trade policy to deliver balanced trade, restored health for American industries, broadly-shared economic growth, and more jobs for American workers.  Learn about the key trade issues impacting the US economy that must be solved. Research by CPA staff takes a deeper look at these issues and which policy changes can lead to dramatic improvement.

CPA Research

Tax Strategy

Top 5 Tax Proposals by Democratic Candidates...and How They Affect Domestic Companies

July 25, 2019
Among the various Democratic presidential contenders, there are a number of proposals for corporate tax reform. After reviewing all the candidates’ plans, we’ve identified the ‘Top 5 Democratic Tax Reform Proposals.’  By David Morse, Tax Policy Director

Working Paper Update: Across-the-Board Tariffs on China with Retaliation & Federal Spending Create Over 1 Million Jobs in Five Years

July 23, 2019
This Working Paper presents the results of a CPA econometric model showing that a permanent tariff on Chinese imports would stimulate the US economy. by Jeff Ferry (Chief Economist) and Steven Byers (Senior Economist)
Tax Strategy

US Should Reject Tax Loopholes that China Favors

July 08, 2019
By David Morse, Tax Policy Director The US and domestic companies should be alarmed by China’s desire to preserve corporate tax avoidance strategies in the world. Many countries have had enough of corporate tax avoidance, and the Organization for Economic Cooperation and Development (OECD) is currently considering solutions to restrict...

US Trade Deficit Leaps to $55.5B in May, But China Deficit Down in 2019

July 03, 2019
By Jeff Ferry, CPA Chief Economist The US trade deficit jumped 8.4 percent in May, to $55.5 billion, as compared to April’s $51.2 billion, according to data published today by the Department of Commerce. On a year-on-year basis, the jump was even larger, up 25.2 percent over the May 2018...

Report to CPA Members: CPA Testifies on Section 301 China Tariffs

July 03, 2019
Editor’s note: CPA’s Chief Economist Jeff Ferry testified on Friday June 21st at the International Trade Commission in support of expanding Section 301 tariffs against China. This is CPA’s written testimony. On June 21st, at the US International Trade Commission headquarters, I testified on behalf of CPA in favor of...

We Need An American Alternative to Huawei

July 02, 2019
By Jeff Ferry, Chief Economist President Trump’s decision over the weekend to allow US component and chip companies to sell to Chinese network builder Huawei was a questionable decision.

Comments on Proposed Modification of Regulations Regarding Benefit and Specificity in Countervailing Duty Proceedings

June 27, 2019
Editor’s note: CPA submitted the following comments supporting a recent Department of Commerce proposal to classify currency manipulation as a countervailable subsidy under US trade laws. CPA has long supported legislation on this topic, but now Commerce intends to achieve this end through regulation. Modification of Regulations Regarding Benefit and Specificity in...

Republican Marco Rubio Says the US Needs To Look Beyond Shareholder Value For Economic Success. He’s Right.

June 25, 2019
By Jeff Ferry, CPA Chief Economist Last month, Sen. Marco Rubio (R-FL) published one of the most enlightening and surprising reports from a member of Congress in a long while.

Inflation Undershoots Again in May —Tariff Effect Nowhere To Be Seen

June 12, 2019
By Jeff Ferry, CPA Chief Economist This morning the Bureau of Labor Statistics (BLS) published the May consumer price index, and once again inflation has undershot Wall Street expectations. 

US Trade Deficit with China Increases in April

June 06, 2019
By Steven L. Byers, PhD, CPA Senior Economist The US international trade deficit in goods and services for April 2019 declined slightly to $50.8 billion, down $1.1 billion from $51.9 billion (revised) in March. US goods exports fell $4.4 billion, and services declined by $185 million. US goods imports declined...
Tax Strategy

Tax Changes May be Afoot for Multinational Entities

June 06, 2019
By David Morse, Tax Policy Associate Director Law 360 reported this week that US Treasury officials believe multinational companies should anticipate new formulas as a part of future taxation. This is good news for companies producing in America who are tired of paying higher tax rates than many multinational enterprises (MNE)....

CPA Briefing Paper: Why Economic Forecasts of the Effects of Trade Action Are Consistently Wrong

June 05, 2019
Jeff Ferry, Chief Economist Steven Byers Ph.D., Senior Economist June 2019 This Briefing Paper looks at the shortcomings of economic models of trade action, their causes, and modifications to improve the accuracy of these forecasting models.

CPA Study Shows Across-the-Board China Tariff Would Boost US Economy, Create Thousands of Jobs

May 15, 2019
By Jeff Ferry and Steven L. Byers, PhD  Economic modeling results from the Coalition for a Prosperous America (CPA) show that an across-the-board 25% tariff on all China imports would deliver a significant, sustained boost to the US economy, including the addition of $125 billion to GDP in 2024 and the creation...

US Trade Deficit Edges Up To $50.0B as China Deficit Shrinks to Lowest in Five Years

May 09, 2019
By Jeff Ferry, CPA Chief Economist The US trade deficit in goods and services edged up in March to $50.0 billion, slightly worse than February’s $49.3 billion. But the big news in today’s report from the Department of Commerce was that the US goods deficit with China has fallen significantly,...

When Chinese Networks Spy On Their Users

May 07, 2019
By Jeff Ferry, CPA Chief Economist On April 30th, global wireless telecom company Vodafone went public with a statement to Bloomberg News saying that the London-based wireless provider found “hidden backdoors,” i.e. multiple security flaws in the wireless network supplied by Chinese network provider Huawei.
Tax Strategy

Does Nike Play Fair in Oregon?

April 26, 2019
By David Morse, Tax Policy Associate DirectorMultinational companies are on the verge of outmaneuvering small domestic companies in Oregon by avoiding the business taxes that domestic companies pay. Specifically, Nike is close to ensuring the Oregon Joint Committee on Student Success raises taxes on businesses using a gross receipts tax...

The US is the world leader in 5G; We’re just missing one piece

April 25, 2019
By Jeff Ferry, Chief Economist There is widespread concern in the US, ranging from cable TV shows right up to the White House, that the US is losing the race for 5G wireless networks. The concern is right, but the analysis is wrong.

February Trade Deficit Improves 3.4% To $49.4B As China Deficit Hits Best Level in 23 Months

April 17, 2019
By Jeff Ferry, CPA Chief Economist The US trade deficit in goods and services for February was $49.4 billion, an improvement of 3.4 percent over the January figure of $51.1 billion, providing more evidence that tariffs are reducing the US deficit. That’s according to figures published today by the Department...
Tax Strategy

What is the Golden Age of Taxation?

April 11, 2019
By David Morse, Tax Policy Associate Director “There is not going to be a return to a golden age of tax, this is about change,” declared Will Morris, chair of the Business and Industry Advisory Committee to the OECD’s Committee on Taxation and Fiscal Policy.

January US Trade Deficit Improves By $8.8B as China Deficit Shrinks to 7-Month Low

March 27, 2019
By Jeff Ferry, CPA Chief Economist The US trade deficit in January 2019 shrunk dramatically, coming in at $51.1 billion, $8.8 billion below the December level and $1.9 billion below the year-ago January level.