2 ms·
> let's remember that 2018 dropped the max corporate tax rate 14% to 21%. So, Tariffs add 25% friction on your steel usage or 10% on your aluminum, or x% on you
by fwdpropaganda 9y ago
> let's remember that 2018 dropped the max corporate tax rate 14% to 21%. So, Tariffs add 25% friction on your steel usage or 10% on your aluminum, or x% on your chinese imports - but your value add is taxed at 14% less.
I couldn't really tell what point you're trying to make.
Also don't really why you're connecting those two. I'm sure in your mind it makes a lot of sense, but you gotta share it with the rest of us...
- smileysteve 9y agoThanks for letting me know that that wasn't clear. The point is that Tariffs are not happening in an economic vacuum; but are happening in the same space as a 14% corporate tax break. The extension of this is that tariffs collect revenue (much like taxes did) while enforcing a political agenda (encouraging changing of sources). If a "trade war" tariff exchange is isolated to raw materials (steel, aluminium, pork, etc) then tariffs are preferable to a higher finished good tax rate because there is margin on the finished good.