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OKdon
Senior Contributor

Tariffs may be the answer

Ou business communities don't like paying  a living wage and they like even less paying taxes. So high tariffs may bring in the needed revenues and raise the price of imported goods to alevel that can't compete with domestic created goods. Those imported goods have done nothing to pay for domestic taxes imposed on american citizens and american workers. Most our exports are raw materials for value added products. So they import our grains and raw materials that can be converted to value product many of which are sent right back to america.

 

Theybwill import our grains and raw materials if they need them which is pretty much the same as when farmers hold production waiting for demand to increase for our products. So if businesses want lower wages they can find them overseas but if they want to bring their products back to our consumers they must pay  a stiff tariff. One that hurts more than a little bit. Thus they can avoid painful taxes  high labor cost while suffering from brutal tariffs on imported goods. So they avoid high wages benefits and federal taxes. The brutal tariffs will be load on consumers but at least our businesses will pay on the imports. It's pretty evident thatbthey think the current tax structure is punitive to businesses and stockholders, but they only can avoid them by producing domestic goods

 

Maybe then they will recognize how friendly the current tax code was to businesses

 

4 Replies
Milligan Hay - Iowa d:^)
Veteran Advisor

Re: Two Words

Black Market. 

schnurrbart
Veteran Advisor

Re: Tariffs may be the answer

Don, don't you realize that the unpatriotic aholes like Millie and the rest of these fools can't abide by anything that costs the rich pigs any money.  They don't care about the country at all.  They just want their so-called party to be in full power again.  The people and the country can all go to the devil as long as they have the power. Unpatriotic slugs!!! And the jerk and his "two words" is the worst of the lot!

Polaris Racer
Senior Contributor

Re: Tariffs may be the answer

Your getting half the answer. And when they come back don't chase them out again.

hardnox
Advisor

Re: Tariffs may be the answer

One thing you can certainly do is put in place countervailing duties related to currency undervaluation. Although while nobody is going to admit that their currency is undervalued there are some reasonably objective bases to use to determine that. It would also go a good ways toward discouraging a devaluation race to the bottom- everybody wants and needs access to the US market.

 

BTW, by some of those measures China's currency isn't terribly undervalued currently but it certainly was when the worst of the offshoring occurred.

 

I'm actually not terribly optimistic about how many "good" jobs are going to be created with tariffs. If you tell Ford they're going to face heavy tariffs on cars that are assembled in Mexico they're going to set up new factories and bring the production back. But those new factories are going to emply about 1/3rd as many people to do the same amount of work- it is ironic that people say that will happen at Burger King if you raise the MW but don't think it will happen with Ford.

 

The best jobs in that deal will be temporary- the engineering firms and technicians who build the plants, then thy're gone, poof. But they'll actuyally start working their way down through the rest of the industry after that.