Thursday, February 2, 2017

Border Tax


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.





14 comments:

Penguin pop said...

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.

Noah Way said...

You mean The National Defense Highway System.

Penguin pop said...

Thanks Noah. You're right. Emphasis on the national defense part.

Footsoldier said...

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.

How 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 ?

DAB said...

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.

Thanx for nothing. Why do these guys hate their country so much?

Matt Franko said...

The foreign entities can always lower their prices by the % tax in USD terms in order to maintain market share...

Mike 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...

Noah Way said...

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?

Also 3 years, $12B means 10 years $50B.

Matt Franko said...

Everybody has jumped on Tito's over the last couple of years:

http://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...

The Rombach Report said...


"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.

The Rombach Report said...

"Grey Goose from France $30.... Tito's from Texas $20.... 33% cheaper for the US made...."

Try 'Vodka of the Gods' from California, available at Trader Joe's for only $12.

Matt Franko said...

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...

John said...

Matt: "..."the whole thing is a disaster!" to put it in Trumpian language..."

As 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"!

The Rombach Report said...

Matt - I don't know about 'Trumpian', but to me you're sounding downright libertarian.

Matt Franko said...

Hey I'll remember that insult Ed! ;)