Thursday, August 1, 2019

Fair tariffs

Trump has added to the list of items from China that will incur new tariffs. The strategy is to convince China to agree to a fair import tax between the two countries. For many years China has had high import taxes on goods the US sends to them while the US has low import taxes on goods coming in from China. Experts say that China is the long term threat and they have a goal to overtake the US. They are building their defenses and may someday present a military threat to the US and the world. Having an economic war with China today may prevent a military war in the future. The government should continue to raise the import taxes on China until they agree to level playing field. While import taxes raise prices because companies pass on the tax in the form of higher prices they same occurs when corporate income taxes are increased. Recall the old saying that companies don't pay tax they just pass it on to the customer. The government could use the money from the import taxes to begin an infrastructure program. They could tell the states to submit projects that are ready to go. This means no delay waiting around for environmental studies as happened to Obama with his shovel ready projects. Recall that very little was done.

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