mranger211 wrote:
So, to re-cap, it is the European's fault the the Trump is president. And because of this we now have tariffs that a) move manufacturing back to the US, b) are entirely paid for by foreign companies, and c) create an enormous amount of income so that we can reduce taxes. All at the same time. But they also do not cause inflation, especially if we reduce interest rates. And if anything bad should happen to, say, employment, it is still Biden's fault. Also, egg prices!
Since some may not understand sarcasm... ;-)
a. Moving manufacturing back to the US is a fine concept, but the costs of manufacturing here are why companies moved to an import model — for example, it has been estimated that the cost of an theoretical iPhone manufactured by Apple in the US (even if they could eventually build the necessary manufacturing capacity here) would be about three times what it is now. (One way to increase American manufacturing is to offer companies incentives — rather than punishment — to manufacture here. That's what China does...)
b. Tariffs are not paid by foreign countries. The party that writes the Tarif (a.k.a. "import tax") is the AMERICAN IMPORTER who receives the imported goods. if the foreign country sold the product to the importer for $100 before, they still sell it to the importer for $100. But now the AMERICAN IMPORTER company must now pay an import tax to the federal government that could range from 10% (adding $10 to the wholesale cost, multiplied by retail markup) to more than 40% ($40+ dollars). Obviously, that cost is passed on from the American importer to the American consumer.
Let's be clear. This is a new tax paid by Americans to the federal government, and created with no legislative input. Imagine for a moment if a previous president had announced a 10% to 40% or more federal tax on everyday products you buy...
c. They don't "reduce taxes." The tariffs ARE taxes. Federal taxes. If you think that China or India or the EU or some other foreign country is paying this money to the federal government, I have a bridge I would like to sell you. AMERICANS pay the tariffs.
