Skip to comments.Idea: Tax imports, encourage American production for a change.
Posted on 02/18/2013 7:45:43 AM PST by Cringing Negativism Network
OK let me offer an idea, contrary to what seems now to be the thought of everyone in both parties.
Americans need to make things.
China has now become the world's largest exporter. That happened several years ago now.
We are unsurprizingly, the largest importer.
What is worse is China continues to grow, and we continue to shrink.
NOBODY is doing one thing it would appear, to fix that.
We sell rack after rack of Chinese made goods in every single store in America.
Every one. And we just keep sending the production of everything out of America.
Wake up GOP. Turn this around. Be for American jobs.
Don’t you get tired of posting the same vanity over and over? You’ll simply get the same responses you’ve been getting all along.
Way more complicated than what it seems on the surface. Way too many raw materials are imported along with the tooling of manufacturing. You could end up pricing manufacturing out of the US by making the capital expenses necessary to conduct operations more expensive. We don’t need to tax imports, we need to make the country tax and regulation friendly to domestic business.
Attempting to social engineer in any way from the top, like this, usually ends up with the opposite result people expect.
1. China is not growing anymore.
2. China has hit the Lewis Turning point.
3. Taxing imports - Smoot-Hawley anyone?
OK, this is intended as satire, right?
...one more flaw, this trusts the government with more taxation and regulation power. It is like treating starvation by giving someone a gastric bypass.
Whatever criticism you have, a Statist I most certainly am not.
Having the highest corporate tax on the planet doesn’t help the US towards that goal. Trade wars will compound the mess.
My thinking exactly.
Nobody advised China.
As far as they (and I) know, China just became the world’s largest exporting powerhouse, and continues to grow.
I haven’t seen manufacturing be able to resurge under the US’ current tax regime. We have the highest corporate tax on the whole planet.
The root cause of this falls into several categories:
1. Attorneys. 85% of lawsuits worldwide are filed in the USA. If we exiled 3/5 of all attorneys in the USA, there’d still be too many. This is a huge drag on the economy and causes misallocation of business resources.
2. Ridiculous number of laws and regulations. So far this year alone, the current administration has put into effect more than 5,000 additional laws. Businesses have no way of knowing what is the law. Departments have rule-making authority and make rules non-stop. This is a huge burden to every American.
3. Ridiculous tax structure that makes it cheaper to go almost anywhere else in the world.
4. Unions - public and private - are sucking the lifeblood out of all of us as taxpayers.
5. Out of control government growth at all levels.
We are being gutted. Do not be shocked or surprised that businesses are trying to survive, by arbitraging governments against each other.
My next business will be overseas.
I’m all for bringing manufacturing back to America but you’ve got to be very careful about import tariffs. Reagan used very specifically targeted import tariffs with great effect but he certainly didn’t just wave his hand and decree import tariffs on all things. That would have been a disaster.
You’ve got to encourage investment in America without punishment.
You can’t tax imports. You can only tax those who buy imported goods. Exactly why do you wish to increase the taxes paid by your fellow citizens? Do you wish to lower their living standards?
The danger of treaties is they take away national sovereignty. The United States is a signatory to numerous treaties, including the Global Agreement on Taxes and Tariffs (GATT.) When GWB needed votes in Pennsylvania, he imposed a tax on imported steel. The United States was taken to an international court for a treaty violation and loss the case. This enabled our trading partners to tax whatever the heck they wanted from the United States until GWB rescinded the tariff. So, with great political acumen other nations targeted imports to their country coming from areas where GWB also needed votes. These were punitive tariffs. GWB was forced to rescind the steel tariff.
Your idea wont work because the United States would be made to suffer much more than other countries would suffer for the imposition of your suggested tax (tariffs.)
Also, this has been tried before and always ends up in a destructive trade war. All sides lose.
To bring business back we need tort reform so specially protected types of people dont get free (taxpayer paid) attorneys to sue for everything under the sun. Also, get rid of the punitive EPA and the alphabet soup of government and local agencies that only exist to further liberal political aims. Incredibly complex and onerous labor laws need modification and theres a host of other governmental liabilities for owning a business in the US. Those are the things we can and should change.
Glad you brought up #3 - it was the not prime cause for the Depression but it made it last as long as it did. Read:http://americanhistory.about.com/od/greatdepression/f/smoot_hawley.htm
You may have a good idea. Goods are not expensive enough yet. People need to spend more. Millions on Welfare are depending upon us.
go back to your union hall and tell you union bretheren that we are not buying into the union line of thinking regarding free trade....
PS: Smoot was a Republican from Utah and chairman of the Senate Finance Committee. Willis C. Hawley, a Republican from Oregon, was chairman of the House ...
China makes low value goods like toys, shoes, clothes.
Bringing those jobs back would not add a lot to the USA.
Any gains in employment would be offset by higher costs, inflation, higher interest rates and damage to our high value manufacturing like cars and airplanes.
That is the economic side and there is zero case for tariffs.
The only argument for tariffs may be on the values/character/morals side.
The low value manufacturing may be a stepping stone for lots of “low value” employees to get a job, improve their value system and become better citizens instead of learning how to be on the govt. dole.
Yes and Amity Shlaes discusses this in her book âThe Forgotten Manâ.
If you are not a statist as you claim, then why do you want to give the government additional power to coercively interfere with markets? It would appear that you seek to engage in behavior micromanagement (specifically, business micromanagement) through coercive incentives. Although this sort of thing has a lot of precedent, it is the precedent of statists and authoritarians “who know best” but not of limited-government, liberty-minded individuals or platforms.
The only reason to bring back these low value jobs is the same for hiring a teen.
Teen workers usually cause more damage than they produce but the everyone needs to start somewhere.
This seems to be a common perception here, that a “trade war” would erupt which would somehow hurt America because our trade balance would be impacted.
Smoot-Hawley was when American built things for the entire globe.
Now the situation is reversed. The only thing which would happen today, is we would need to rebuild American industry.
Which we should be doing. Now IMO.
You want to solve perceived problems with a tax levied by the state, but you're not a statist, no sir.
Jeeps now being made in China
GM is expanding prodution and investment in China
Lots of “American” cars being built somewhere other than America. More “Import” cars being built here.
A very good one, which we should consider very carefully before embarking on any such plan.
All I am saying is we are spending ourselves to import bankruptcy.
Once our money and our production is gone, America is through.
Here's the deal: if you win, you just had U.S. taxpayers pay for lawyers to raise taxes on themselves to your own profit. If you lose, you just had U.S. taxpayers pay for lawyers, and you lose nothing.
U.S. imports decreased 66% from US$4.4 billion (1929) to US$1.5 billion (1933), and exports decreased 61% from US$5.4 billion to US$2.1 billion, both decreases much more than the 50% decrease of the GDP. Thus, exports minus importswhich is the GDP formuladeclined from 1 billion to 600 million, while GDP was $58.9 billion, resulting in a trivial effect on GDP of about two-thirds of one percent.
For more details, read the full report Facts About Manufacturing.
I have more respect for the 1st US Congress than for a bunch of Benedict Arnold Free Traitors....
(And by the way, you're wrong about its effect on the economy. But you know that already.)
Its like trying to beat obedience into a dog. You might get some obedience out of fear but you’ll never get the loyalty and the true obedience that comes with it. More often than not, the dog will flee.
Old numbers dude.
China is now the export leader.
The momentum is all negative as well. China is growing, America is shrinking.
Did you know you were a communist butt kisser?
No, but see if we want to fix a problem that was created by Government intrusion into the free market (Taxes, Regulations, Fines, Union B.S., Mandatory Healthcare, etc.) then we must have more Government intrusion into the free market by instituting even more Taxes, Regulations, Fines, Union B.S., Mandatory Healthcare, etc.
Don't you see it now?
October 2012 is old?
Here is a picture of 1rudeboy at his last meeting with his communist handlers. He is the on kowtowing.
Monumentally, colossally stupid idea showing an absolute and total lack of comprehension of the effect taxes on economic activity. SAY, you work for the government don't you?
I prefer your condemnation to your suckin' sympathy,--Bobby Bare
baby good for nuthin' is good enough for me.
When China - Japan goes hot the so called free trade bull crap comes to an end. In the mean time all of out unemployed factory workers will have to continue their medical training.
By the way, we don’t have “free trade” with either China or Japan.
America is no longer the world’s leading exporter.
That is the beginning of the end, if we continue to do things the way we are now.
I am not saying what we should do, except it should be significantly different from what we have done.
We need production of all sorts.
Most importantly we need a trade BALANCE.
China is simply flooding our markets. Making sophisticated aerospace and military production facilities all while running a huge trade surplus with the United States.
That is a fatal scenario for America.
We need to change. How is up to discussion, but right now we are plunging very quickly, to some sort of very bad place.
Smash your Chinese-Made computer, and send me something via Pony Express.
You’re putting American riders out of work.
So you’re pro-tax.
You want to use your higher taxes to dictate to others what they may buy.
You’ll be happier at Democratic Underground.
Michele Bachmann has some good ideas on spurring investment in America. If I recall correctly it involved zeroing out the tax rate on new investments until the company was effectively turning a real profit then not allowing them to be taxed above 12%.
Lots of carrot and little in the way of stick.
You want to make things?
If the government gets in your way, let us know.
Until then, I’ll buy whatever from whoever provides the quality I want at a price I’m willing to pay.
Regardless of where it comes from thank you very much.