Posted on 03/19/2017 8:28:57 PM PDT by MarvinStinson
Exactly
“Ryan deserves to go down in flames in any other attempt to continue his political career. “
Trump is nobody’s fool. He hates Ryan, and if anyone is being set up to fail, it’s Ryan : )
Wonderful summary of Rinocare. It must be defeated. It will be defeated if Trump can’t get the communism out of it. You cant sell me car insurance where someone wrecks his corvette and then buys a policy.That drives my premium through the roof!! GET PREEXISTING CONDITIONS OUT OF MY POOL!! You cant sell me car insurance if you take money in my premium and buy someone elses car insurance. That is not fair to me ( I work hard for my money).
admittedly, i’m in a learning mode here, and going on my interpretation of the article’s definition of “border adjustment tax”— which in itself sounds orwellian; however, my interpretation is that a (1) tariff on a foreign made product is paid by the foreign exporter in American dollars to the American gov’t, vs. (2) the border adjustment tax—which is a tax paid on a foreign produced product by a combo of American seller and consumer (really the American consumer as all such taxes are traditionally passed on to the consumer).
is that right? if so, that’s a vast difference, imo.
This basically doesn't exist - tariffs are paid by the importer of record. It has to be this way because the US has no jurisdiction to tax foreign companies that are exporting to the US. The first moment that a tax can be applied is when a product arrives in the US, and at that point, it is whoever is receiving that has to pay.
The difference between a classic tariff and the border adjustment tax is that a tariff is paid by the importer when the product arrives in the country, and the border adjustment means the importer can't deduct the cost of buying the imported product from their taxes.
So under a straight tariff, if I import a $1 apple from china, I might pay a 30% tariff when it arrives in country : $.30 check to the govt. Under border adjustment, I import the $1 apple then sell it for $2. At the end of the year when I file taxes, I have to report a $2 profit because I can't deduct the $1 as the cost. At a 20% corporate tax rate, I'd pay $.40 to the govt. But if I bought an American apple for $1.25 and sold it for $2, I'd be able to deduct the cost, and only have to pay tax on $.75 of profit and would pay $.15 to the government.
I'm not advocating for a border adjustment tax, but I think it is an interesting idea that's worth looking at. It really does the same thing as a tariff, just applied in a different way,
from websters:
Tariff
TAR’IF, noun
1. Properly, a list or table of goods with the duties or customs to be paid for the same, either on importation or exportation, whether such duties are imposed by the government of a country, or agreed on by the princes or governments of two countries holding commerce with each other.
Importer
IMPO’RTER, noun He that imports; the merchant who, by himself or his agent, brings goods from another country or state.
Merchant
1. A man who traffics or carries on trade with foreign countries, or who exports and imports goods and sells them by wholesale.
ok FRiend, thanks for the clarification: given the above definitions for tariff, importer and merchant: if an importer of record is the “merchant.” i’m ok with the “importer of record” paying the tax, whether he’s an importer or exporter or both; whether he’s an agent of a foreign gov’t or a multinational co; whether he’s even a us citizen—because the importer of record is the “trafficker.”
i’m definitely not ok with an American retailer who is not the trader or trafficker paying the tax, which i think would be the case with the so called “border adjustment tax.” which i would call the “soak the American consumer tax act while adding zero risk to the trafficker and the foreign country whose products he’s trafficking” to our country.
also notice that the proper (just) goal and purpose of the tariff is imbedded in the defintion above, that of getting a fair treaty “agreed on by the princes or governments of two countries holding commerce with each other.”
Why, yes, Karl, a National Retail Sales Tax, in the form of the FAIRtax, is PRECISELY the answer!
We need you help!
To find out how you can help, go to https://www.fairtax.org.
America will never be FRee (or great again, for that matter!) as long as we suffer under the Marxist inspired progressive income tax and are kept enslaved by the Internal Revenue System!
MAGA! Help us replace the income tax iwth the FAIRtax and abolish the IRS!
FRom http://www.fairtaxplan.org/faq.php
“Question: How does this [FAIRtax] affect U.S. competitiveness in foreign trade?
“Answer:
“Since all U.S. exporters immediately see an average 20-percent reduction in their production costs, they experience an immediate boost in their competitiveness overseas. American companies doing business internationally are able to sell their goods at lower prices but similar margins, and this brings jobs to America.
“In addition, U.S. companies with investments or plants abroad will bring home overseas profits without the penalty of paying income taxes, thus resulting in more U.S. capital investment.
“And at last, imports and domestic production are on a level playing field. Exported goods are not subject to the FairTax, since they are not consumed in the U.S.; but imported goods sold in the U.S. are subject to the Fair Tax because these products are consumed domestically.”
I like FAIRtax, and a border adjustment would be very similar.
In today’s economy, most of the time the retailer is the importer. Walmart is importing their the crap directly from China. Apple is manufacturing, importing and retailing iPhones. Best Buy is buying appliances from Haier in China. What’s the difference to you whether the tax is applied at the border as a tariff, or is applied via tax accounting? Does the consumer pay either way? Probably, and that is a rational reason to oppose all tariffs. But once you decide to follow a more protectionist/interventionist trade policy, a border adjustment is as reasonable a strategy as a tariff.
The beauty of FAIRtax is that FAIRtax IS A LEGAL (by international law) border tax.
A contrived, piecemeal, product specific border tax is not legal under international law.
I am not an expert on the GATT, but every one of our major trading partners has a legal border tax (THE USA, AS NOTED, DOES NOT!) - it is called a Value Added Tax (VAT) and the USA definitely does not want a VAT!
VAT is an evil tax!
Totally agree that FAIRtax would be a dream plan. But if we aren’t going to get a full tax system reform, including repealing the 16th amendment, a border adjustment seems like a reasonable approach to dealing with our current trade issues, and better than a piecemeal or product or country specific tariff.
Precise analogy.
1) Low uniform tariff on all imports
2) 9 or 10% flat tax on personal income with no exemptions, deductions, credits, etc and from the first dollar of income. or
3) straight up uniform sales tax on goods and services.
Of those three the best is the flat tax. It is low enough that evasion will be minimal. Both of the others would, at any level, promote smuggling and off-the-books trade.
Preexisting condition needs high risk pool — not ruin my pool. You pay for it— I dont. This is about free market — not free stuff!!
Bookmark
FAIRtax is only complicated to those who refuse to understand and appreciate FReedom!
The prebate is included to allow ALL family units to purchase the necessities of life tax FRee, and to instill a measure of progressivity into the tax system. It is profoundly regrettable to me that Americans have been coerced/hornswaggled into believing that people who are successful in life and earn higher incomes should be penalized for their success.
FAIRtax REWARDS success!
Your so-called “flat tax” is still an income tax, and you know as well as I do that we will NEVER be a FRee country so long as we have an income tax and the IRS exists!
Is your concept codified in legislation?
FAIRtax is: S 18 & HR 25.
I have read all the literature around about ‘Fair’ Tax. It is a statist scam for the hoi polloi.
You are certainly entitled to your opinion, wrong as it is!
You got some ‘splainin’ to do re: “statist scam for the hoi polloi.”
Care to tell us how you arrived at that conclusion? Specifically?
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