Author Topic: Consumer v. Producer Nation. Income Tax v. Tariff  (Read 336 times)

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Calvin6s

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Consumer v. Producer Nation. Income Tax v. Tariff
« on: March 11, 2016, 12:31:00 AM »
With all the talk about trade policy, perhaps it is time for a specific thread dealing with tariffs and/or other trade policies that some might simply dismiss as a tariff.

I will start out with the fact that we are currently a consumer, not a producer nation.  Some quick googling led me here.

I'm going to add a new column.  Ratio of export to import.  A positive number means we exported more $ wise and negative means we imported more.  A % ratio takes away the inflation problem of charting.
1960   16%
1961   19%
1962   14%
1963   17%
1964   22%
1965   15%
1966   8%
1967   7%
1968   1%
1969   0%
1970   4%

1971   -2%
1972   -7%

1973   2%
1974   -3%
1975   10%
1976   -4%
1977   -15%
1978   -14%
1979   -10%
1980   -7%
1981   -5%
1982   -8%
1983   -18%
1984   -27%
1985   -30%
1986   -31%
1987   -30%
1988   -21%
1989   -16%
1990   -13%
1991   -5%
1992   -6%
1993   -10%
1994   -12%
1995   -11%
1996   -11%
1997   -10%
1998   -15%
1999   -21%
2000   -26%
2001   -26%
2002   -30%
2003   -33%
2004   -34%
2005   -36%
2006   -34%
2007   -30%
2008   -28%
2009   -20%
2010   -21%
2011   -21%
2012   -19%
2013   -17%
2014   -18%
2015   -20%


Do you think a tariff has a different effect on a nation depending on where they currently find themselves.  Consumer or Producer nation?  Why?

Calvin6s

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Re: Consumer v. Producer Nation. Income Tax v. Tariff
« Reply #1 on: April 01, 2016, 01:52:42 AM »
Quote
China Tax on Overseas Purchases Set to Kick In
As consumption plays a bigger role in the economy, the government prefers to see outbound consumption flow back, especially for medium- and high-end goods, said Tan Naixun, an analyst at research firm Analysys International.

Wait?  No talk of reprisals and predictions of doom from this policy?  Surely other nations will just react right back, right?

I mean indexing a tariff (tax on imports) v. citizen tax (tax on exports) according to the consumption or production status of a nation?  Crazy talk.

Next thing we will be talking about indexing immigration to real unemployment rates.  Nah.  Too "simplistic".

Quote
Li Jinyu, a 36-year old who teaches English at a university in Beijing, said she wants to shop locally but finds products are often more expensive than overseas ones.

She said she paid a little over 600 yuan for a pair of boots from London through Amazon.com Inc. when they were on sale. The same pair of boots at a name-brand store in Beijing carried a price of 1,900 yuan, she said, so even with the new taxes, the online price is better.

If I see good deals, Id still rather buy overseas, she said.

Well look at that.  Just a thought.  The import price may go up and the price might be "passed on to the consumer", in China's case it looks to be directly passed, but it isn't just money going up in flames or exiting the nation.  It is money being used as tax revenue.  Money that could either:
a.  Lower the income tax burden according to the tariff tax income
b.  Don't lower the income tax burden, but use the money to invest, subsidize, etc. the nation's infrastructure and/or native industries.
Personally, I'm for a and I would do it be lowering the lowest tax brackets accordingly.

And we always hear about "Fair Tax" (or VAT).  Well this is a VAT that would apply to imports, but not exports.

And at the same time, native product becomes more competitive.  It may still be more, but it might even be able to lower at the same time considering the income tax burden will have been lowered.  Two points pulling together like gravity.

Nah.  We will just claim history proves it doesn't work.  Remind me again.  Were we a consumer or producer nation then?
« Last Edit: April 01, 2016, 06:16:38 AM by Calvin6s »