Looks like Ryan is going to propose a big Border Tax in order to (to them) "pay for" Trump's modified fiscal policy. The assumed affected special interests are squaring up their lines.
Paul Ryan thinks the only way he can pay for massive tax cuts is through a $1.2 trillion revenue plan known as "border adjustment" that raises taxes on imports and lowers them on exports.
Border adjustment: The war officially begins https://t.co/z0zVJ4c4GF— Axios (@axios) February 2, 2017
It always has to be some mystified Rube Goldberg proposal with these clowns. They need to study up on how Eisenhower built the Interstate Highway System for starters.
ReplyDeleteYou mean The National Defense Highway System.
ReplyDeleteThanks Noah. You're right. Emphasis on the national defense part.
ReplyDeletehe can pay for massive tax cuts is through a $1.2 trillion revenue plan known as "border adjustment" that raises taxes on imports and lowers them on exports.
ReplyDeleteHow can you do both at the same time ?
The other countries will just do the same ?
A tariff on Mexican goods would be a tax on U.S. consumers ?
So in other words, Americans will pay for the wall with the import tax and other countries will get a discount to rub it in.
ReplyDeleteThanx for nothing. Why do these guys hate their country so much?
The foreign entities can always lower their prices by the % tax in USD terms in order to maintain market share...
ReplyDeleteMike has a video on his youtube about this he makes some good points about US orders (ie "demand!") not changing in the face of something like this... only to the extent the leading USD flow will cause any increase in orders... then deposits might increase but it would be because of the increase in withdrawals creating additional taxable events and accordingly deposits... these people will think the tax increase led to the increase in deposits...
Like for Mexico they export the Corona and Dos Equis beer along with the Patron and those items have become Veblen goods in the US so they have a YUGE amount of excess margin in them... the can cut the %... orders for those items shouldnt increase very much
Same with the Mercedes-Benz and BMW brands from Germany.... they are high margin....
And then the OPEC people have a lot of rent in their oil price and US oil producers keep adding production...
so the US consumer might not have to face higher prices if the foreign producers lower the rent...
Why would Mexico take a bath to fund building the wall? Ain't gonna happen. Joe Sixpack will foot the bill, as usual. My Tequila just went up. Maybe I can bring it in from Canada?
ReplyDeleteAlso 3 years, $12B means 10 years $50B.
Everybody has jumped on Tito's over the last couple of years:
ReplyDeletehttp://vodka.underthelabel.com/compare/140-427/Grey-Goose-vs-Tito-s-Handmade
Grey Goose from France $30.... Tito's from Texas $20.... 33% cheaper for the US made....
The Grey Goose people can drop their price... or they are going towards $40 and will bleed share profusely...
ReplyDelete"Also 3 years, $12B means 10 years $50B."
Noah - You're probably being rather generous. I live in the Boston area and I remember the cost overruns on the Big Dig.
"Grey Goose from France $30.... Tito's from Texas $20.... 33% cheaper for the US made...."
ReplyDeleteTry 'Vodka of the Gods' from California, available at Trader Joe's for only $12.
Ed I'm in the People's Republic of Maryland... We only have individually sanctioned stores that can sell alcoholic beverages and no mail order either... So Trader Joe's and Costco can't sell booze ... "the whole thing is a disaster!" to put it in Trumpian language...
ReplyDeleteMatt: "..."the whole thing is a disaster!" to put it in Trumpian language..."
ReplyDeleteAs a self-proclaimed expert in the new field of "Trumpian social linguistics", I'll have to correct you. Trump would have said "it's the worst deal ever" and then said "losers"!
Matt - I don't know about 'Trumpian', but to me you're sounding downright libertarian.
ReplyDeleteHey I'll remember that insult Ed! ;)
ReplyDelete