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To: Huck
I don't get why we don't just put duties or tariffs or whatever on imports.

Think of it this way... if you are now paying $100 for a foreign built television set, and we impose a Tariff to the manufacturer of 10%, what do you think happens to the cost of that television?

Answer: New price of television will be $110 (television + tariff). The foreign country doesn't end up paying the tax, the consumer does.
This is why we have such a large trade imbalance with China. We do not charge tariffs on goods coming in, but they do. Therefore their goods are cheaper here, while their consumers have to pay "extra" for the privilege of buying U.S. goods.

34 posted on 08/03/2005 5:25:51 PM PDT by golfboy (character is doing what is right, when no one is looking)
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To: golfboy

No. Because one, there's competition out there for my money, so even with a tax, the competitive pressure is going to keep the price down. Second, there's a breaking point somewhere. They can only pass so much along. I ain't buying it. And third, fine, let the market decide.


106 posted on 08/03/2005 6:55:17 PM PDT by Huck (Whatever.)
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