eliminate corporate income tax
A friend who got a masters in economics said they’d work a problem, like whether to build a shopping center. The answer would be a resounding no. Then, they’d work the same problem figuring in the affect taxes had and the answer was a resounding yes. Taxes influence businesses to do things that are not sound policy for the rest of us.
Yet IBD staff writes a headline "Say no to the Border Tax
Besides being mildly anything-phobic, the title also misdirects the problem about what to do with imports vs. exports and throws that into the broiler border issue (by name) dealing with immigration and illegal entry.
I don’t know why any American would buy into the premise that annual trade deficits with our trading partners is a bad thing (urp).
Don’t think of it as a border tax, think of it as a VAT on imports. There, isn’t that better?
If Congress spent it, let Congress PAY FOR IT!
We authorized it and expected Congress to carry out our wishes.
They are still under our contract that they will fulfill or be replaced.
Once a tax is created it is hard to repeal. And then future Democrat administrations will bastardize it. True conservatives should never trust any tax as a solution.
More tariffs and less income taxes.
Every founding father was a protectionist and they governed the USA after Adam Smith's writings on free trade. The USA became a world economic industrial power behind a wall of tariffs. Just like China ia doing today. FACT.
If IBD is against it then I am for it.
FUIBD
Create a new tax for all wire transfers that are sent to Mexico by the Mexican tax cheaters. Problem solved.
I don’t know why these writers are all looking at this from one view point - consumer prices. The reality is taxes, regulations, labor costs, etc. present a one way slate of incentives to produce offshore. Another reality is that every other nation in the world uses this tax, we Americans are financing other countries governments with it.
The selling points of this proposed tax are twofold: a) is for no one to pay it by producing within the US and b) to honor savers by recreating King Dollar ! It’s simply a very effective counter measure to the misplaced incentives above that can be swiftly injected to the blood stream instead of waiting for the dismemberment of leviathan. Pretty clever, a tariff regime you don’t want anyone to pay.
Lastly, since the details aren’t clear to even smart money people I feel we should take it up separately and not cloud the business and individual tax debates up with it.
Trump always specifys the tax would be on just those companies that leave the USA and move manufacturing offshore and then export them back here. That is a narrow group and does not apply to all imports into USA.
FairTax IS the answer!
Consider this:
The USA has been screwed (and screwing itself) in respect of trade ever since WW II! Because, the USA is the only major country in the world that has no border adjustable tax (VAT or GST)!
So, our trading “partners” export their goods FRee of taxes (border adjustable taxes are REBATED at their border) and are imported into the USA with no or minimal USA import duty or taxes.
And, USA goods are exported FRom the USA carrying the ENTIRE BURDEN of taxes imposed by the EVIL USA Corporate income tax, which is, of course, NOT BORDER ADJUSTABLE!
Adding insult to injury, importing countries add their VAT to the USA import, causing USA goods in EVERY ONE OF OUR major trading “partners” marketplace to carry the burden of TWO federal taxes (USA and the importing country VAT/GST) while foreign goods sold in the USA carry the burden of NO (or VERY minimal) federal taxes!
The absence of a border adjustable tax is causing US manufacturing goods to be overpriced, relative to their foreign competitors, at home and abroad!
At a MINIMUM, one would expect USA import duties to be exactly equal to the rebated VAT/GST FRom our respective trading “partner,” would one not? To AT A MINIMUM, level the playing field in the USA.
Actually, there is a VERY good solution to this dilemma we find ourselves in - the FairTax – HR 25 and S 18.
IMHO, FairTax WILL solve the FRee/Fair Trade issue VERY nicely!
FairTax levels the playing field both at home and abroad: FairTax imposes NO tax on businesses, so under the FairTax, USA exports will compete on price, quality and availability overseas and at home, because the FairTax would ALSO be levied on imported goods at the point of sale.
This is a long post, but the BS we have been hearing come out of Washington, DC about “border taxes” is just that!
FairTax IS the answer!
We need your help in order to replace the income tax with the FairTax and abolish the IRS.
The USA will NEVER be a FRee country so long as we have an income tax and an IRS!
To find out more about the FairTax, go to https://www.fairtax.org.
————Because exports are consumed abroad, they’d be exempt from the tax-—
The constitution prohibits a tax on exports.
At issue is a universal tariff on all imports. The evidence seems to be that the concept of taxing every item imported on the General Agreement on Tariffs and Trade is not popular enough to pass muster.
Trump wants to make deals to achieve his trade goals. such a law would tie his hands. Trump wants to negotiate one on one to achieve a satisfactory balance of trade. His primary target is China from which he believes he can use the threat of tariffs and other barriers as leverage to obtain desired concessions.
The talk of a border tax is just talk, nothing more.
The issue is how soon will the corporate income tax be reduced and the big earnings $$$ parked off shore be brought into the economy
There is no limit to the ignorance of these a-holes.
They (you?) Do not decry the regulations and taxes that drive production overseas, so it’s reasonable to assume they support them.
That is the problem.
So, if it’s good to place regulations and taxes on American business then what’s the problem with burdening imports in the same fashion, if they are so positive.
I think the IBD and it’s ilk hates middle class America. I think they value foreign workers over Americans. I think they use domestic regulation to generate business opportunity overseas for their cronies.
If production is to be heavily taxed and regulated, let it be so for imports too.
The BAT hurts IBD cronies. It hurts globalists, it helps domestic production. It helps domestic competitiveness.
Your globalist pants are around your globalist ankles. Now your globalist ass is exposed and hanging out for all to see. We don’t like it. Pull you pants up and fix domestic taxes and regulations if you don’t want a BAT. You don’t want to.
That’s my objection to your objection to the BAT.
I trusts President Trump’s instincts far more than this IBD staff writer....
Many (if not most) of the countries we compete against in trade have a value added tax. My understanding is that in most cases the value added tax is not applied to goods that are exported from that country, but are applied to goods imported to that country. So if a company in Germany exports goods to the US they do not pay the value added tax. However, if a USA company exports to Germany, the US products are taxed. The end result is that USA products are at a disadvantage.
The US already has a tax break of sorts for companies that produce goods in the US. It is the Domestic Production Activities Deduction (IRS form 8903). This is one of most overlook tax deductions for small businesses. With tax coming due in a few weeks, if you own a small corporation and produce goods in the US you need to look into this. There is a small business option that is easy to figure.
If you go anywhere else in the world and try to purchase any American made product you have to pay an import fee of some damn kind.
If other countries essentially tax our stuff, we should tax their crap coming in.
Try buying a Cadillac in South Korea or Japan. 400 percent import fee. And how many of their crappy vehicles are sold here with NOO fee?
Have you seen this?
Tax Reform: The Good, the Bad, and the Really Ugly – Part Four By John Mauldin
This week we’re going to start the letter talking about why tax reform is one of the most urgent decisions facing the body politic today.
http://ggc-mauldin-images.s3.amazonaws.com/uploads/pdf/170301_TFTF.pdf