Trump on Trade Trump has called for “a 20% tax for importing goods,” and a “Twenty-five percent tax on China, unless they behave.”
No No No, this will cause us to go into a depression, here is what we really need....if we wanna do Tariffs “Right”
We should have a Flat income tax of say 10% and guess what the Tariff Rate is based upon, the income tax RATE!
So if we have a Income tax of 10% we have a Tariff on imported goods of ... 10%!
If we have a National sales Tax instead of a Income tax and it is a 10% national Sales tax, then we have a 10% Tariff on imports....
Tie the Tariff to directly reflect the Nation Tax being levied on the Domestic side of things, that way this forces the Big Biz and Big Labour alike to want to lower the damned taxes domestically and if they want lower the tariffs, they will HAVE to lower the income tax on domestic production!
Extend this to H1B workers as well, they pay 10% income tax and also an additional 10% Labor Tariff! That way there is a demand to hire domestic vs. foreign workers unless they really really need the foreign workers...
I think directly tieing ANY Tariff Directly to whatever your National FLAT TAX rate is is a stroke of genius, it would make sure both sides have REASON to keep the rate itself lower.
So if someone wants to trade so damned badly and they don’t like the 10% Tariff they lobby and lower it to 8% well guess what income taxes have to go down to 8% which makes us and our workers more competitive which then lessens the detrimental effect of trading with some place like China.
If we are going to Tax Domestic Labor inside this country, then we damned well better tax good coming in as well and at the same RATE!
Any Tariff will ALSO have to follow the “Laffer curve” otherwise like with taxes we court disaster!
Fair tax combo ....fair tax hits everything sold...so even wetbacks will pay taxes now.