COLD WAR II HAS INTERESTING NEW PARAMETERS: China Regulator to Propose 50% Cut to Car Purchase Tax.

Carmaker shares surged after Bloomberg News reported the proposal, which would stimulate a market they’ve increasingly relied on for growth. Volkswagen AG, selling just under 40 percent of its vehicles in China last year, rose as much as 6.9 percent, the biggest intraday move since July 2016. Ford Motor Co. and General Motors Co. rallied in pre-market U.S. trading, while BMW AG and Daimler AG gained in Germany.

The move would help shore up the world’s largest automotive market, which is facing its first decline in more than two decades as a trade war with the U.S. hits at consumer spending power.

It is a moral imperative that the United States not fall behind in the tax cut race.