How so? Where is this "hidden tax" on a $50 microwave oven that was made in China that I buy at Wal-Mart? There's no income tax paid to feds from the Chinese factory workers. There's a little bit for the Wal-Mart employees, but it in no way reaches the amount being argued here.
How so? Where is this "hidden tax" on a $50 microwave oven that was made in China that I buy at Wal-Mart?
Sigh. --- No american company can even profitably ~make~ [in the USA] a microwave that Walmart can sell for 50 bucks, -- because of our tax/welfare structure.
There's no income tax paid to feds from the Chinese factory workers. There's a little bit for the Wal-Mart employees, but it in no way reaches the amount being argued here.
You've just outlined another good reason why we should revamp our tax structure with the Fair Tax. Thanks.
Well rehearsed line.
Anyway, the "hidden tax" is in the price. Not because of taxes in the product made overseas- but because products manufactured and sold in the US contain a tax component of 22%. This means that the prices of imported goods could be less because they are manfuctured for less- but since all comparable products have higher prices (due to embedded tax costs), imports rack up their prices to just nearly the same as domestic prices to maximize their profit.
OTOH if imports had the NRST placed on them, they would not have that gravy train anymore - they'd have to compete :0). All those imports - and we get lots - would have to have the nrst slapped onto their price.
Of course, since
a)most imports have the tax component removed via gov't subsidy before coming in and
b)importers are running huge profits on imports b/c they can still charge the prices that do indeed include a tax component
- then the nrst can be slapped on them without affecting their price much if at all.
Instead of the US taxpayer subsidizing imports, foreign companies would have to play on a more even field - 'course we still have payroll issues- but man what an improvement it would be.