Carrier is raising prices--Decided ***Before**** Trump Deal

Mexico has a Free Trade treaty (ALE) with Europe, and it is not looking like Europe will embrace TAFTA- the free trade agreement being negotiated currently with the USA, so the interest is clear - exporting out of Mexico is much more interesting financially.
Canada has CETA now, but obviously, paying higher salaries would offset the savings...

originally posted by: seasonal
a reply to: AMPTAH

I I would bet they are not making all that sweet $$$ they thought.

They can set the price of product they make in Mexico to anything. Import it at that price. Pay the 35% on the import price. Then raise the price once their US Division gets hold of it. They can even import below cost of production. So, Carrier can play with the numbers and totally erase all that 35% tariff. They are not going to import the Air Conditioner at the market price that they will be selling it for inside the US.

Now if the US Government would tax their final sale price at 35%, like add a special "value added tax" at that level, then the tariff would have some teeth.

If Trump really want's to have an impact he could mandate a "Federal Sales Tax" to be added to any "Local Sales Tax", on any product sold in the US, and only apply that Federal Sales Tax to those products that have the label "Made In Mexico".

That would do the deed.

But, slapping a tariff on import, for a corporation that has both a foreign division and a US division, is simply an invitation for the creative accountants to play with the numbers until they get the optimal result.

a reply to: Metallicus

I am happy to pay more for an American made product that is produced by employed Americans. If we all bought all American products made by American workers the standard of living in the entire country would go up and we would all be better off even if paying more for goods.

Hahahahaha! A patriotism tax! Self-imposed!

Hey, American members, sell this guy something. You can charge what you like. P.T. Barnum approves.

a reply to: AMPTAH

Very well explained, thank you.

originally posted by: Astyanax

Hahahahaha! A patriotism tax! Self-imposed!

Well, taxes were originally supposed to be voluntary.

You paid it because it was your patriotic duty.

But, if you were on hard times, you could skip the tax.

Somehow the idea of the use and meaning of taxes changed.

It became a way to punish people and corporations.

We now force people to pay taxes, and add taxes to any activity we want to curtail.

a reply to: AMPTAH

The US also used to gain a fair amount of $ from tariffs.



Then the income tax came on shortly after the fed was started on Christmas eve 1913.

a reply to: AMPTAH

Well, taxes were originally supposed to be voluntary.

You paid it because it was your patriotic duty.

But, if you were on hard times, you could skip the tax.

Somehow the idea of the use and meaning of taxes changed.

It became a way to punish people and corporations.

What lamebrained, unhistorical nonsense. Taxes were first levied by tribal leaders and feudal lords who imposed them on people because they could.

In modern, organized societies people pay taxes to defray the costs of state services they enjoy. The rich consume more services so they must pay more tax. And nobody is exempt, nor even the poor.

Your ideas about taxation are self-serving, sentimental and wrong.

originally posted by: Astyanax

Your ideas about taxation are self-serving, sentimental and wrong.

Well, you're certainly entitled to your view.

But, I'm right.

Taxing began with Tithing.

The idea was to give voluntarily a 10th of your periodic produce. In hard times, you could skip.

Today taxes have very little relationship to anything.

For example, if I paint my house, I pay more tax, because the market value goes up. So, I'm actually punished for making my neighborhood look nicer.

That's because taxes today, is whatever the government can take, for whatever reason they decide.

But, long ago there was a spiritual reason for paying part of your earnings to the group you're part of.

Today, the world is all material, so people have no clue.