Trade Wars and Tariffs

#2,151
#2,151
Vol8188 said:
Your logic seems wrong here. If you increase taxes, prices will rise. Same with tariffs.

Saying “I didn’t notice price cuts after a recent tax cut” isn’t much of a point.
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Your logic is that companies will pass through tax cuts to customers. The biggest corporate cut decrease in history and WMT and HD had higher operating margins after it. It unequivocally shows they didnt pass a dime to customers....
 
#2,153
#2,153
Here's another example.

FedEx and UPS both made billions in 2018 and 2019. FedEx paid 0 in income taxes (because they fully expensed planes and they are much more plane heavy than UPS) while UPS paid taxes both years.

FedEx aint gonna reduce their delivery fees because they will lose money on that. FedEx was paying 0 in federal taxes at 21% or 35%. UPS aint gonna lower they know their delivery fees because their competition wont lower theirs. If you look at the 10Ks for both companies, you will see the similar operating margins pre and post tax cuts.

Now, take the example of a TV made in another country. A $50 tarrif is going to impact every retailer that sells that TV the same..
 
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#2,154
#2,154
BigOrangeMojo said:
Your logic is that companies will pass through tax cuts to customers. The biggest corporate cut decrease in history and WMT and HD had higher operating margins after it. It unequivocally shows they didnt pass a dime to customers....
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You’re falsely pretending taxes occur in a bubble. Prices of all things go up annually. I don’t know, nor do you or anyone else, what those prices would have been without the tax cuts. It’s ignorant to speak so definitively.

I can tell you they would have been more with increases, because you’ve just increased cost for companies.
 
#2,155
#2,155
Vol8188 said:
You’re falsely pretending taxes occur in a bubble. Prices of all things go up annually. I don’t know, nor do you or anyone else, what those prices would have been without the tax cuts. It’s ignorant to speak so definitively.

I can tell you they would have been more with increases, because you’ve just increased cost for companies.
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Income Taxes dont impact companies uniformly. See FedEx and UPS example earlier.

If there was a huge increase in employer share of payroll taxes (from 7.65% to 12.65% for example), that would get passed through since it impacts companies much more uniformly. You saw with labor costs with COVID, that would get passed along pretty quick.

Tarrifs are much more uniform. If 10 retailers sell the same Samsung TV that has a 20% tarrif on it, it will impact them all pretty much the same
 
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#2,156
#2,156
BigOrangeMojo said:
Here's another example.

FedEx and UPS both made billions in 2018 and 2019. FedEx paid 0 in income taxes (because they fully expensed planes and they are much more plane heavy than UPS) while UPS paid taxes both years.

FedEx aint gonna reduce their delivery fees because they will lose money on that. FedEx was paying 0 in federal taxes at 21% or 35%. UPS aint gonna lower they know their delivery fees because their competition wont lower theirs. If you look at the 10Ks for both companies, you will see the similar operating margins pre and post tax cuts.

Now, take the example of a TV made in another country. A $50 tarrif is going to impact every retailer that sells that TV the same..
Click to expand...

You’re only looking at one specific industry and specifically an industry that has insanely limited competition. And you’re also not asking the same question.

My assertion has not been “companies will immediately cut prices if you cut their taxes”. If anything I’m stating “companies will raise prices if you raise their taxes”. But a lot of the “cuts” are harder to measure because the price of all things increases annually. So the cuts are often in the form of lower increases.

However there’s still multiple examples of companies specifically crediting the tax cut with the reason they lowered prices. Target and Ford were two of those companies
 
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#2,157
#2,157
BigOrangeMojo said:
Income Taxes dont impact companies uniformly. See FedEx and UPS example earlier.

If there was a huge increase in employer share of payroll taxes (from 7.65% to 12.65% for example), that would get passed through since it impacts companies much more uniformly. You saw with labor costs with COVID, that would get passed along pretty quick.

Tarrifs are much more uniform. If 10 retailers sell the same Samsung TV that has a 20% tarrif on it, it will impact them all pretty much the same
Click to expand...

I agree with this.
 
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#2,158
#2,158
jmacvols1 said:
there has been as many as 50, I do not have a copy of the ustr report. why would you be surprised countries are willing to make deals?

Vietnam had 90% tarriffs, Trump put reciprocal tarriff 46% on vietnam and equaled Britain's tarriff at 10%

the tarriffs are being used as leverage to bring trading partners to the table to make new better deals for the United States. evidently leftists hate this.


today:

Grok
@grok
14m
Yep, it’s true—Taiwan’s President Lai offered zero tariffs to the US today, per Reuters, to kick off trade talks

====================

The Jerusalem Post
@Jerusalem_Post
·
1h
Prime Minister Benjamin Netanyahu will meet with the US Secretary of Commerce and United States Trade Representative Jamieson Greer on Sunday night in Washington.

edit update and the left hates it


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Vietnam did not have 90% tariffs. Their effective tariffs on US imports are 5.1%. The US has a 90% trade deficit with Vietnam. That is not even in the same universe as paying 90% tariffs.
 
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#2,161
#2,161
jmacvols1 said:
37 trillion in debt is not rich, about 1.5 trillion dollars per year just to pay interest on debt.

if I had 5 million but owed 70 million, am I rich? if I borrow 5 million just to pay the interest on the 70 million am I rich? The US has 9 trillion dollars coming due on the debt. Trump is trying to get interest rates down to refinance that 9 trillion.

www.wita.org

The U.S. Trade Deficit - WITA

Home Previous Page Documents What is the Trade Deficit? Information Courtesy Congressional Research Service, IF11016 What is the trade deficit? The “trade deficit” generally is used to refer to...
www.wita.org www.wita.org
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Countries don't pay tariffs. Importing businesses pay tariffs.
 
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#2,172
#2,172
BigOrangeMojo said:
Also have "trade deficit" emergencies and "immigration" emergencies that are being used for these tarrifs...
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Yea, I’m not a big fan of “iT’s aN eMeRgEnCy!!”

85SugarVol said:
Emergency Powers are dangerous. Have served as the wellspring for some of the greatest rights violations in history.

They should be abolished.
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