Posted on 01/17/2017 4:34:53 AM PST by expat_panama
With their Party having won control of all three branches of the federal government in the recent election, Republican tax experts are seemingly desperate to help the GOP give back its gains. Evidence supporting this claim is the growing support among Republican tax scholars (and apparently legislators too) in favor of what they describe as a “border adjustable tax system.” They don’t call the Republican Party the “stupid party” for nothing.
The new revenue stream popular among certain members of the Republican commentariat calls for reducing the corporate tax in favor of a value-added tax (VAT) placed on goods made outside the United States, but that are exported to the U.S. The argument is rooted in numerous falsehoods, fallacies, and plain bad economics.
Advocates lament the fact that almost all countries tax U.S. produced goods that are exported to foreign countries with a VAT. The argument, if readers can stop laughing (or crying), is that since other countries injure their citizens by virtue of taxing imports, so should the U.S. injure its own.
“Not so fast” say Republican cheerleaders of this most mindless of tax ideas...
...One comical argument offered to explain what is absurd is that “we have to make things in America to make America great again.” The Republicans who still understand Say’s Law will hopefully explain to their misguided comrades that the U.S. is the world’s biggest importer precisely because its people produce more goods and services than anyone else in the world. At the same time, the Republicans who choose to understand basic economics no matter the inhabitant of the White House might also explain to the Party’s errant tax strategists that it's not the job of the American people to fund an ever bigger government in the first place.
(Excerpt) Read more at forbes.com ...
The BAT is a tariff.
What is a border adjustment tax?
It's not actually a tax or a tariff. It would be a fundamental change to the way the U.S. government taxes imports and exports. In a tax system with border adjustment, companies would no longer be able to deduct the cost of their imported goods, and the sales of their exports would no longer be subject to U.S. tax. That means American companies could reduce the prices for products they sell abroad.
Yep—and we can both benefit from it and surpass it with our system, if we get taxes, regulation and immigration restrictions right.
You are never going to overcome a 10x difference in wages without a tariff. Ever. 3rd world wages and no import duties are like crack cocaine to the Big Cap globalist manufactures.
We don’t need more low wage jobs than those that need to be local.
Otherwise, we have enough talent to compete at a higher level.
(Unless the Dems manage to hold onto and keep importing the low-skill illegals they’ve been pulling over the border.)
It is not true. To say its not a tariff is just a linguistic fiction, because tariffs would trigger a WTO challenge while a BAT might not (although it definitely will).
Under the BAT no company could deduct the cost of an imported good from its revenues for the purposes of calculating taxable profit.
In other words, in a simplistic example, today, Wal*Mart buys a fan from China for 10 dollars and sells it to me for 20. Their profit is 10, and they pay a profit tax on the 10 only.
Under BAT, they no longer get to deduct the 10 they paid for the fan. Their profit is now the full 20. So if the tax rate is 20% after this tax reform goes through, Wal*Mart pays 4 dollars in taxes instead of 2 without the BAT.
It is an addition tax that amounts to 20% of the cost of the imported good.
That’s a tariff.
What do we do with the people with an IQ less than 100? That would be half the population or 160 million people. There is no place for them in creating or developing new technologies. They have no viable skills in an Information-techno-agrian society. None. The only service level jobs they can do are not life supporting without government aid(socialism).
Send them where the average IQ is 50, thereby raising the average IQ in both places. Sort of what Mexico's doing, sending their dumb people away, but this would be more altruistic than Mexico.
In the real world WalMart doesn't mark up a 10 dollar import 2 times and sell it for 20 dollars. They sell it for $11.00. The BAT is not strong enough to be effective. It is too complex. The RINOs want a painless war, there is no such thing.
Free Traitors™ are out of touch with reality.
Just take a look at all the Americans under 100 in these professions right now:
http://www.iqcomparisonsite.com/occupations.aspx
That is, don’t worry—we’ll find a place for you!
;-)
In your example, the BAT would be far more painful than in mine. It’s called arithmetic.
Tax on 1 dollar profit at 20% = $0.20
Tax on 11 dollar profit at 20% = $2.20
The BAT would be a tenfold increase in profit taxes in your example relative to the mere doubling in mine.
They only mark it up 1 dollar not 10 like in your example. Please read more carefully.
You can make fun of the American working class but Trump is about to stick it to the globalists. ‘bout time.
I’m not making fun of the American working class. You’re the one who said they were too stupid to do other than abject manual labor. I offered you a link that disproved your insult to them.
Trump is about to stick it to the globalists, but not at the cost of free, fair trade—which will help all American workers.
The PROFIT goes up by $10 under the BAT.
They are taxed on the FULL AMOUNT of the SALE PRICE.
They no longer get to subtract their cost of goods sold from their net profit if those goods were imported.
It is a radical change to corporate accounting, but functionally IDENTICAL to a tariff that is equal to the corporate tax rate.
I will bet that just like you, Trump has no idea what he torpedoed in that interview. He torpedoed the best chance he had to help American businesses compete against imports, and all because he was too lazy to bother to understand the proposal.
For engineering it shows a range of 85 to 120. 85 is borderline retarded. How ridiculous is this graph. LOL.
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