If Tariffs Are "A National Sales Tax"...

S

Sirthinksalot

Verified User
...What are corporate taxes?

Do those of you who claim that tariffs, which are a tax on foreign companies, amount to a national sales tax support a reduction, or elimination of corporate taxes for US companies?

Why or why not?
 
Truth Detector said:
That's easy. Corporations don't actually pay corporate taxes. The buyers of their goods and services do. But alas, asking leftists a question like this will only result in a never ending circle of ignorance and stupidity.

After all, they love BIG Government solutions.
Click to expand...
Yep! :thup:

The consumer pays corporate taxes. White Libs pretend they don't know this. :palm:
 
Sirthinksalot said:
...What are corporate taxes?

Do those of you who claim that tariffs, which are a tax on foreign companies, amount to a national sales tax support a reduction, or elimination of corporate taxes for US companies?

Why or why not?
Click to expand...
Taxes, particularly the corporate tax and the personal income tax, are too low in this country.

We have industries in the for profit private sector that just don't belong there.
We'd get much more bang for the buck paying for those things with our taxes and none of the money wasted on profits.

In the modern world, capitalism belongs in the consumer goods market and little else.
It's an anachronism, but we're a very socially regressive nation.

I've said it before. If real estate and resources were the only criteria,
America would indeed be the greatest nation on earth.

Unfortunately, the people matter as well,
and our pathetic, mongrel gene pool is too much for the bountiful resources to overcome.

Most of our population are descendants of people who couldn't cut it where they emigrated from.
 
Screenshot-20241211-190806.jpg
 
Sirthinksalot said:
...What are corporate taxes?

Do those of you who claim that tariffs, which are a tax on foreign companies, amount to a national sales tax support a reduction, or elimination of corporate taxes for US companies?

Why or why not?
Click to expand...
A corporate income tax is not the same thing as a tariff.

All importers would have to pay the tariff. Not all corporations make a profit and the profit is usually a small percentage of the product sold.

Example -
If a product costs $1 to import and the company sells it in the US for $2. The $1 in the US is not all profit but covers business costs in the US to transport, market etc. If the business costs are $0.80 with a profit of $0.20 then a 20% tariff would mean the cost of the product is now $1.20 so the business can't sell it for $2 and make a profit. They would have to raise their prices to $2.20 to make the same dollars in profit. With no tariff they were making a profit of 10% on the item. To keep making a 10% profit on the item after the tariff, the price would rise to $2.22. The result is there is a 10-11% increase in the price of the product. There is no way to avoid that cost increase. If there was a supplier in the US that could deliver the product for $1 why would they be going overseas? If an American supplier can supply the product for $1.20 it results in the exact same increase in cost to the consumer.

Corporate tax comes out of the companies profits. Profits come from the consumer. But there are many ways to reduce taxable profits while still benefiting from the sale so it is possible for a company to make a profit but put all of the profits back into the company and avoid income taxes.
But for the sake of argument we will use a similar company. The company sells a product for $2 and it costs $1.80 to manufacture, import, market etc. The company has a profit of $0.20 per item sold. The company pays a 15% income tax. That means the company pays 3 cents in taxes for each item sold meaning they retain $0.17 after taxes. If the corporate income tax goes to 40%, in order to retain a profit after taxes of $0.17 the cost on the item would rise to $2.08 with 11 cents going to taxes. But you can simply avoid paying any income taxes in the US. You pay out bonuses to the company executives and invest in new plants and equipment that you write off your taxes so you have no taxes. Or you own the manufacturing company overseas. You make them charge you $1.20 for the item you are importing. You show no profit in the US. You pay taxes overseas that you can write off your US taxes.

Bottom line is companies have many ways to avoid paying corporate taxes so there is no tax bill passed on to consumers. Tariffs can't be avoided without paying more for domestic production which acts just like the tariff in raising product prices.
 
NiftyNiblick said:
Taxes, particularly the corporate tax and the personal income tax, are too low in this country.
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Sirthinksalot said:
...What are corporate taxes?

Do those of you who claim that tariffs, which are a tax on foreign companies, amount to a national sales tax support a reduction, or elimination of corporate taxes for US companies?

Why or why not?
Click to expand...
Well, we could start by noting that tariffs are not a "sales tax." They are an importation duty imposed on goods coming into the country. Foreign companies are only hit with it if and when they try to export goods to the nation imposing the tariff. There are often ways around these.

Take the so-called "Chicken tax" on imported light trucks.

en.wikipedia.org

Chicken tax - Wikipedia

en.wikipedia.org en.wikipedia.org

This imposes a 25% tariff on imported light (pick up) trucks. What foreign manufacturers, particularly the Japanese, did was simply build factories in the US and import some components while making others in the US and assembling their trucks in the US. That got around LBJ's--yes, he was the president that imposed this--Chicken tax on these vehicles.

So, what tariffs usually do is modify corporate behavior rather than increase the price of goods or services. You slap a 25% tariff on imported steel? Steel plants in the US are expanded and new ones opened by foreign investors to produce the material domestically. That's how these things work.
 
Sirthinksalot said:
...What are corporate taxes?

Do those of you who claim that tariffs, which are a tax on foreign companies, amount to a national sales tax support a reduction, or elimination of corporate taxes for US companies?

Why or why not?
Click to expand...
Tariffs make American companies more competitive in the domestic market. Corporate taxes make American companies less competitive on foreign markets.
 
SmarterthanYou said:
arguments like this only prove that democrats are incapable of understanding capitalism
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Nearly every economist tells you that tariffs are passed on to the consumer. You're without knowledge. There are centuries of accumulated data. Trump did not invent tariffs, but he did train the miseducated to act like they know what is going on. Nobel prize winning economists are united .
 
Nordberg said:
Nearly every economist tells you that tariffs are passed on to the consumer. You're without knowledge. There are centuries of accumulated data. Trump did not invent tariffs, but he did train the miseducated to act like they know what is going on. Nobel prize winning economists are united .
Click to expand...
stop trying to educate anyone on tariffs being passed on to the consumer until you accept that corporate taxes are passed on to the consumer.
 
@Nordberg

President Joe Biden has indeed retained many of the tariffs that were initially imposed by President Donald Trump.

Biden's administration conducted a review of the Section 301 tariffs on Chinese goods and decided to maintain those tariffs while also proposing to increase rates on specific goods like electric vehicles, batteries, and semiconductors.

This decision reflects a continuation of Trump's trade policies, with some strategic adjustments aimed at sectors critical to U.S. economic and national security interests.

The Biden administration has also introduced new tariffs on certain Chinese imports, effectively expanding on the existing tariff structure rather than dismantling it.


www.dorsey.com

President Biden Will Keep Section 301 Tariffs and Increase Duty Rates Sharply on Certain Chinese-Origin Goods

www.dorsey.com www.dorsey.com

taxfoundation.org

Tracking the Economic Impact of the Trump Tariffs

The tariffs amount to an average tax increase of nearly $1,200 per US household in 2025.
taxfoundation.org taxfoundation.org

 
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