It's taxed at the same point as domestic goods - sales tax at the retail level. The federal government taxes neither, in most cases.
I will tell you something, the tariff comes about before any good goes to wholesale or retail markup.
Yep, and that cost is paid, ultimately, by customers who buy those goods.
So if you get a pair of shoes from China that were sold to an American wholesaler at $4 and those shoes are taxed at 25% at the border for tariff, then the tax is $1 on the manufacturer in China, and the wholesaler and retailer can still mark it up to $25, $50, $75 or whatever.
Right. It's called the free market. They can charge whatever the market will bear, and if they charge too much, a competitor will undercut them. That's a *good* thing.
The wholesaler and retailer are still making massive profits with a tariff in place.
That's a lefty argument. "The rich can afford to pay a little more in taxes." Same basic argument, but that money doesn't come from thin air; it's paid by *people*.
Learn something about the supply chain before spouting your gibberish.
By the way, I always laugh at you free traitors who would prefer to tax American capital before taxing foreign capital.
Wow...this is the third time on this thread I've had to remind someone that the first person to resort to name-calling in an argument is losing that argument. Anyway when did I say I wanted to tax American capital?
Like I said, you have no clue what you are talking about.
First, the only time the federal government would get a cut in the supply chain is at the border. Right now, the US taxes very little at the border with MFN countries and nothing or close to nothing with free trade treaty countries.
Second, the tariff is passed onto the consumer in what way? The wholesaler doesn’t pass on any taxes, because his good that he bought is a tax deductible operating cost, and wholesalers don’t pay sales taxes for what they buy. Operating costs are not subject to taxation, so this notion that the retailer passes on the tax to consumers is a lame, dishonest argument. The retailer doesn’t pay any direct taxes either, because the retailer directly passes on the sales tax to the consumer AFTER the sale. In most cases, the consumer makes his purchase on the basis of retail price, not the sales tax, and the purchase is completely voluntary. Further, the retailer doesn’t markup the price on the basis of a tariff, but at what he can get his product sold in the free market.
If I buy a bottle of Burgundy at the local restaurant, which was $50 bucks wholesale, with a 10% tariff included, and the restaurant charges $150 for it, it doesn’t matter what the tariff was if I am still buying the wine. Neither the wholesaler nor retailer is making an economic decision based on tariff, but on demand and market price. People in this country still buy French wine even if it is 3 times the cost of equally good domestic wine with tariffs and excise taxes included.
Third, you call me a Commie, because the wholesaler and retailer are making profit on markup—after the tariff. When is the tariff calculated in the retail price? Regardless, if the tariff is included or not, the consumer is still buying with his own free will at markup, so what is your beef with that? The choice still exists. People don’t have to buy any foreign good against their will.
The wholesalers and retailers pay corporate tax on net profit. That’s it. Where else in the supply chain do they pay a tax to the federal government? This notion that they pass on their taxes to the consumer is a bogus argument, because they are taxed only on net profit, which comes long after the sale. No retailer or wholesaler is taxed on a per unit basis unless it is an particular, targeted excise tax, which is a domestic tax.
I have yet to hear a free traitor argue that domestic excise taxes destroy the economy.
Fourth, what makes you free traitors have no credibility is that you harp on and on about how tariffs are a tax on the consumer, which they are not, but you do absolutely nothing to roll back excise, sales taxes and other direct taxes on the consumers. I have yet to hear one conservative with any power in any state or federal level cry about how domestic sales taxes hurt industry like they do when it comes to protecting foreign capital from tariffs.
And you do nothing about the discriminatory practices of foreign countries against American capital in foreign countries. Why give free reign to foreign countries in the US when they do everything in their power to protect their domestic industry against the free and fair competition of American products and services?
Which would you rather have, a tax on foreign capital and a roll back of domestic taxes and/or reduction of debt, or a tax on domestic capital and income and no taxes on foreign capital?