Is U.S. Going BAT-ty?

[expat_panama]

1/27/2017



Is U.S. Going BAT-ty?


...the border adjustment tax, or BAT, has much appeal...


...it taxes imports, but not exports, so it tends to favor U.S.-based companies. That, proponents argue, would lead to many more jobs here in the U.S. and discourage companies from moving offshore.

It would also enable us to replace the current punitive U.S. corporate tax of 35% with one much lower, while also taking a giant step toward a consumption tax ...


...BAT has an "America First" appeal to it. Trump aides even say it could pay for the border wall...


...consumers, who will suddenly face sharply higher costs for all the things they buy...


...if we tax Mexico's sales here, what's to stop them from taxing our sales there?...


...a BAT seems like a Rube Goldberg device to us. Rather than trying to sell Americans on a confusing new import tax, Republicans would be wiser to stick with real reform: Make taxes lower, flatter and fairer for everyone, and stop punishing savers and investors.


* * * * * * * *

Everyone says tariffs reduce the trade deficit. That's a fantasy and here's real life:

 

[william the wie]

A small fuel tax increase to fund infrastructure that covers not just boats, trains, trucks and planes but also use in generators and heating plants would lead to fuel conversions in buses trains and long haul trucks plus higher returns on private building of pipelines. On the other hand BAT makes no sense atall

 

[yiostheoy]

The US is going fascist.

Fascism is very popular and has its advantages.

Look out China and Mexico. Germany too.

 

[kyzr]

Love that chart!!

 

[expat_panama]

Love that chart!!

Yeah, it proves that lowering import taxes directly instantly causes a soaring trade deficit 30 years later. It's just like how ISIS was caused by giving away the Panama Canal.

 

[william the wie]

While we do need taxes to reduce the deficit and hopefully the national debt BAT sounds like the opening salvo in a trade war.

 

[owebo]

The US is going fascist.

Fascism is very popular and has its advantages.

Look out China and Mexico. Germany too.

Trump is now the only thing standing in the liberals way.....

 

[Redfish]

While we do need taxes to reduce the deficit and hopefully the national debt BAT sounds like the opening salvo in a trade war.

Maybe, but its a war that we can win. China puts tariffs on our products that we ship there, so do most other countries. We are stupid to allow that and not retaliate.

Once they begin to see their exports decline they will come begging for a better deal, and Trump will negotiate one.

Playing hardball works. Pussification does not.

 

[miketx]

Love that chart!!

Yeah, it proves that lowering import taxes directly instantly causes a soaring trade deficit 30 years later. It's just like how ISIS was caused by giving away the Panama Canal.

Your chart proves nothing but it does look like vagina.

 

[william the wie]

While we do need taxes to reduce the deficit and hopefully the national debt BAT sounds like the opening salvo in a trade war.

Maybe, but its a war that we can win. China puts tariffs on our products that we ship there, so do most other countries. We are stupid to allow that and not retaliate.

Once they begin to see their exports decline they will come begging for a better deal, and Trump will negotiate one.

Playing hardball works. Pussification does not.

While we do need taxes to reduce the deficit and hopefully the national debt BAT sounds like the opening salvo in a trade war.

Maybe, but its a war that we can win. China puts tariffs on our products that we ship there, so do most other countries. We are stupid to allow that and not retaliate.

Once they begin to see their exports decline they will come begging for a better deal, and Trump will negotiate one.

Playing hardball works. Pussification does not.

China primarily uses regulations and currency manipulation to avoid US imports. Going after things that don't exist and are not vital is a great way to get a famous defeat.

 

[Redfish]

While we do need taxes to reduce the deficit and hopefully the national debt BAT sounds like the opening salvo in a trade war.

Maybe, but its a war that we can win. China puts tariffs on our products that we ship there, so do most other countries. We are stupid to allow that and not retaliate.

Once they begin to see their exports decline they will come begging for a better deal, and Trump will negotiate one.

Playing hardball works. Pussification does not.

While we do need taxes to reduce the deficit and hopefully the national debt BAT sounds like the opening salvo in a trade war.

Maybe, but its a war that we can win. China puts tariffs on our products that we ship there, so do most other countries. We are stupid to allow that and not retaliate.

Once they begin to see their exports decline they will come begging for a better deal, and Trump will negotiate one.

Playing hardball works. Pussification does not.

China primarily uses regulations and currency manipulation to avoid US imports. Going after things that don't exist and are not vital is a great way to get a famous defeat.

Yes, and we need to address their currency manipulations and find ways to counter that. Sitting on our asses and doing nothing is the way to ensure defeat.

 

[william the wie]

What's wrong with declaring them currency manipulators? The Chinese are presumably telling the truth about using currency manipulation to reduce rates of capital flight and brain drain but so what? That's their problem