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Donald Trump has suggested eliminating U.S. income tax and replacing it with tariffs on imports.
Donald Trump on Thursday suggested the idea of implementing an "all tariff policy" that could potentially allow the U.S. to eliminate the income tax, according to sources in a private meeting with the Republican presidential candidate, CNBC reported.
originally posted by: wAnchorofCarp
a reply to: pianopraze
It sounds good but likely unenforceable.
….
Although income tax should just go away because of its obsolescence.
originally posted by: Justoneman
Ross Perot is another I think Trump reminds me of too. Perot would have cleaned the swamp.
originally posted by: wAnchorofCarp
a reply to: pianopraze
It sounds good but likely unenforceable.
While I can't speak on most materials I can speak on steel as an example.
So we raised tariffs on steel from certain countries, mainly China. And to that point many vendors and suppliers also do not want Chinese steels. They are sub par.
Anyway, what they would do is sell to Mexico and Canada. Rebrand, resell to the US.
So relying and trying to analyze and predict what tariffs may be raised would be quite difficult.
Although income tax should just go away because of its obsolescence.
In 1909, progressives in Congress again attached a provision for an income tax to a tariff bill. Conservatives, hoping to kill the idea for good, proposed a constitutional amendment enacting such a tax; they believed an amendment would never receive ratification by three-fourths of the states. Much to their surprise, the amendment was ratified by one state legislature after another, and on February 25, 1913, with the certification by Secretary of State Philander C. Knox, the 16th amendment took effect. Yet in 1913, due to generous exemptions and deductions, less than 1 percent of the population paid income taxes at the rate of only 1 percent of net income.
This document settled the constitutional question of how to tax income and, by so doing, effected dramatic changes in the American way of life.
originally posted by: BingoMcGoof
a reply to: pianopraze
If I recall correctly, Trump has been dangling this bait now for quite a while. No income tax and make overseas producers pay tariffs on their goods. So silly me thinks, ah, wouldn't those over seas producers then just raise the prices to compensate for the loss of profit due to tariffs?
That would leave prices going up and inflation going up and consumers tightening their belts which would decrease demand for those foreign goods which would then lower the amount of goods coming in which would then lower the tariffs being paid and who is going to pay to fix the roads.......
The elimination of the income tax combined with drilling/low oil prices would be the biggest stimulus we could receive.
He's not intellectually capable of understanding the consequences of what he's proposing.
originally posted by: BingoMcGoof
a reply to: Lumenari
Maybe you label those questions as fantasy because you have not thought enough about it yourself, I don''t know.
Do you suppose that we are to trust American corporations that would grow bigger and richer under this plan to be so patriotic that they would just say, ''Hey Americans, come share in our new wealth''. Is that what you think would happen ?
I doubt it. They would push for more freedom, as if they don't already have to much, to run the entire enchalada. Would they say ''Hey guys, here is higher pay to help you out''? Would they say, ah, let's forget about automation, let's forget about automatic assembly lines or maybe they will say let's just skip this AI revolution. No, they wouldn't.
“If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
Samuel Adams.
If all imported products coming in to the United States had increased tariffs, there would be short-term and long-term impacts. The short-term impact would be that prices would rise on all imported goods. Consumers could opt to either pay the higher price for the imported product or choose a domestic product, which would also typically have a higher price than the pre-tariff imported product. No matter which choice the consumer makes, the price they would pay would be higher than the previous price of the imported product. So overall prices will rise.
The longer-term effect would be a reduction in the quantity of foreign goods imported into the United States. The law of supply and demand tells us that when prices go up, demand goes down and this, after all, is the goal of the tariff — to reduce imports. There will be fewer imported goods available in the United States, which could also drive up prices overall.
Here’s an example. Two families, the Smiths and the Joneses, each have the same monthly necessary expenses, except for their mortgages, of $6250, which adds up to $75,000 a year. (We’ll exclude their housing costs from this exercise, since housing wouldn’t be affected by a tariff.) The Smiths have an annual income of $150,000, which barely covers their expenses. The Joneses, on the other hand, have an annual income of $300,000, which allows them to easily cover expenses and put some money into savings. So, the Smiths are paying a higher percentage of their income on necessities.
~yawn~
You are quick to assume that corporations would automatically become bigger and richer under this plan.
I read a few months ago he said 100% on imported cars. that's absurd, No one is paying that much for a Hyundai Accent, so theyd move to the USA and the car still goes up because they have well paid unions to deal with now. Unless he plans to also outlaw unions and allow lower more USA operational wages.