Friday, 27 January 2017

Trump considering US taxpayers pay for the wall :s

Imagine if Trump told the corporations that they would suddenly have to pay a 20% tax on anything they source from a big exporting next door neighbour country? An impossible image of corporate masters marching in protest against it titillates the mind, but of course it would never happen. He wouldn't even consider it.

However he's fine with getting the American people to pay for it, with the possible introduction of a Mexican goods consumption tax; ie. a 20% tax on all Mexican goods imported into the US.

20% is BTW a huge starting point for a consumption tax. Both Australia and New Zealand introduced it at 10%. It's not changed in Australia but I understand it's grown to 15% in New Zealand.

Also, this isn't a universal consumption tax on everything Trump is talking about, just Mexican goods. Does Trump understand even the basics of capitalism? If you make something 20% more by selective taxing, people go for a cheaper alternative. The Mexican imports would dry up simply through the functions of capitalism. Along with US revenue through the tax.

But most spectacularly, being elected on a platform of representing the common man, may well end up screwing them to pay for his lunatic wall.

Understandably the Mexican president cancelled his visit with Trump, adamant that Mexico would not pay for his fucking wall :)
The discussion over an import tax to pay for the project comes after Mexican President Enrique Peña Nieto canceled a planned meeting with Trump after the US president signed an executive order Wednesday kicking off the process of building the border wall and vowed once again to force Mexico to pay for it -- something Mexico has adamantly rejected. 

Spicer also said Thursday evening that revenue from a tax on Mexican imports or other revenue streams that didn't involve a direct payment from the Mexican government would fulfill Trump's campaign pledge to compel Mexico to pay for the border wall. 

The White House press secretary rebuffed questions from reporters about the impact of a 20% tax on imports from Mexico on American consumers, insisting such criticism was "short-sighted." Businesses that manufacture US consumer goods in Mexico would inevitably pass on an import tax to American consumers, who could see the price of many goods soar. 

Spicer first said Thursday that Trump was on board with a plan by congressional Republicans to tax imports from Mexico as part of broader comprehensive tax reform legislation to help pay for the border wall. 

"By doing it that way we can do $10 billion a year and easily pay for the wall just through that mechanism alone. That's really going to provide the funding," Spicer had said, referring to a 20% tax. According to the Office of the US Trade Representative, Mexico's exports to the US in 2015 was valued at $316.4 billion. The trade deficit is estimated to be $50 billion. CNN