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Tariffs are costs passed from importers onto consumers. Because of market principles, tax cuts do not get passed along to the consumer. Its simple, really.
Major tax cuts almost always result in unemployment falling noticeably. In other words, tax cuts result in more consumers making money. It's simple, really. Except to rabid liberals trying to push their wishful thinking as an "agenda" based on vague buzzwords like "market principles".
Is Donald Trump right that China slaps a 25 percent tariff on American cars?
By John Kruzel on Monday, April 9th, 2018 at 5:06 p.m.
President Donald Trump took to Twitter to bemoan what he considers unfair practices in the United States’ automobile trade with China.
"When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%," Trump tweeted April 9. "Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!"
Trump’s figures match up with international trade data.
Trump’s numbers are drawn from American and Chinese government trade data.
The United States does, in fact, pay a 25 percent tariff on cars sent to China, whereas China pays only 2.5 percent on cars coming into the United States.
It's to be expected that our board liberal fanatics who complain most shrilly about tariffs can't even spell it. Much less actually look them up to find out the truth before screeching in "outrage".
Trump is obviously of the opinion that he can wait out the Chinese and win in the long term.
If you follow the money, here's where I get.
We make products here and sell them here. China makes products and exports them here. China's cost structure is cheaper than our costs. How can that be? Our products should be cheaper here than another country who sends them from halfway across the globe.
So either the costs of our products are too high, or theirs are too low.
Tariffs make the cost of products go up... so with regards to China, it makes their cost more equal to our costs. In that sense - it will cost us more money.
Maybe our costs to make products are too high. Maybe too many regulations? Maybe taxes are too high? Maybe instead of going through tariffs, we should change what we do to make the costs lower and make it more cost efficient for companies to manufacture here. Why not make it more cost efficient to buy American?
There is no way we should have a huge trade deficit with any country - especially over a long period of time.
Maybe our salaries are too high or those Chinese salaries are too low. Why don't you tell your employer you'll work for $2 a day to make your company more competitive.
Maybe our salaries are too high or those Chinese salaries are too low. Why don't you tell your employer you'll work for $2 a day to make your company more competitive.
I would rather offload stuff like 401K and Health benefits from the responsibility of the employer. That may lower costs as well.
Major tax cuts almost always result in unemployment falling noticeably. In other words, tax cuts result in more consumers making money. It's simple, really. Except to rabid liberals trying to push their wishful thinking as an "agenda" based on vague buzzwords like "market principles".
You throw around the term "major tax cuts" but fail to note that tax cuts come in different forms and affect different people, resulting in different outcomes.
Tax cuts on the middle and lower classes will result in increased consumer spending, increased demand, and (in theory) lower unemployment.
Tax cuts on the upper class do not materially increase consumer spending, they result in the upper class saving more.
Tax cuts for corporations do not get passed along to consumers via lower prices nor do they result in increased hiring. The number of employees is dictated by consumer demand. Prices are dictated by what the market will bear. Neither are affected by corporate tax cuts.
Its a shame the Trump tax cuts were aimed at the upper class and corporations, neither of which help consumer prices, consumer spending, or unemployment.
Tariffs are costs passed from importers onto consumers. Because of market principles, tax cuts do not get passed along to the consumer. Its simple, really.
I said raise taxes, not tax cuts....if we raise taxes on companies will that not raise the price of their products, or do you think companies will absorb those taxes? It's simple, really...
I said raise taxes, not tax cuts....if we raise taxes on companies will that not raise the price of their products, or do you think companies will absorb those taxes? It's simple, really...
It depends. Certainly, we could raise corporate taxes to the pre-December 2017 levels without increasing the price of goods because we already know how those companies will behave when subjected to those rates.
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