Political News and Conservative Analysis About Congress, the President, and the Federal Government
has said he will block the deal. Here are three reasons why Biden’s opposition is based in politics, not reality.economic agenda. Despite U.S. Steel’s financial woes, Nippon wants to pay a premium for the company because the Trump tax cuts incentivized foreign direct investment.
The former presidentthe Trump Tax Cuts and Jobs Act and raise the corporate tax rate to 28%. Admitting that the Trump tax cuts encouraged Nippon to invest in U.S. Steel would undermine Biden’s campaign trail lie that business tax cuts do not lead to economic growth. Second, Biden’s opposition to the Nippon deal is another deliverable for the Big Labor bosses that spent at leastBy opposing the Nippon deal, Biden and his Big Labor paymasters can campaign on protecting union jobs from the whims of a greedy multinational corporation. They are lying through their teeth: Nippon hasto honor all of U.S. Steel’s existing commitments to their workers, including collective bargaining agreements negotiated with USW. In a further sign of commitment to U.S. Steel’s workers, Nippon Third, Biden’s opposition to the Nippon deal allows him to prop up his campaign trail image as the biggest trust-buster since Teddy Roosevelt. In April, the Department of Justice an antitrust probe into the Nippon deal. Ironically, blocking the Nippon deal would create more antitrust concerns than it would solve. Biden has repeatedly stressed his desire to keep U.S. Steel under American ownership, which would mean a sale to Ohio-based Cleveland-Cliffs at a price point far lower than Nippon’s offer. But if Cleveland-Cliffs buys U.S. Steel, itInstead of following the political winds, Biden should follow the facts. Nippon is not buying U.S. Steel to strip it for parts — the company already operates eight steel mills in the United States. Rather, the company plans to reinvigorate U.S. Steel with new technology that will ramp up domestic steel manufacturing. To fund this, Nippon has pledged $1.4 billion in additional capital if the deal is approved, amounting to a $64,211 investment in each U.S. Steel worker.Biden can only block the deal if the Committee on Foreign Investment in the United States recommends that blocking action on national security grounds. There is no case for such a recommendation. When announcing his opposition to the Nippon deal, Biden said that he would triple tariffs on Chinese steel. Biden should look at the facts and understand that the best way to strengthen the American steel industry is by allowing the Nippon deal to proceed. Short of that, Biden should allow CFIUS to review the deal on its merits without political meddling. Tom Hebert is Director of Competition and Regulatory Policy at Americans for Tax Reform and executive director of the Open Competition Center.
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