Lawmakers say new legislation in the Senate will make U.S. exports more competitive and reduce the trade deficit. The Competitive Dollar for Jobs and Prosperity Act, announced Wednesday by Wisconsin Senate Democrat Tammy Baldwin and Missouri Senate Republican Josh Hawley, would manage the U.S. dollar exchange rate and bring it into alignment by placing a “market access charge” on foreign purchases of U.S. stocks, bonds and other assets.
According to the Coalition for a Prosperous America, bringing the U.S. dollar into alignment could add nearly $1 trillion to America’s GDP, create more than five million new U.S. jobs and raise more than $2 trillion in tax revenue over six years. Senator Baldwin says the bipartisan fix “will increase American exports” and boost the “manufacturing and farming economy.”
Senator Hawley says the legislation “creates a powerful new tool to fight back against foreign currency manipulators.” Hawley adds farmers “deserve a chance to earn a fair profit on their crops,” saying the bill will help create a level playing field.