Sunday, April 2, 2017

20% BORDER ADJUSTMENT TAX

Stated purposes: To increase the price of imported manufactured goods, encourage increased domestic job creation and as a source of tax revenue to offset promised income tax reductions.
Possible results:
A Bangladeshi made $50 shirt at Walmart will become a $60 shirt.
A U. S. made shirt at U.S. labor cost, $58.
A U.S. made shirt at Bangladeshi wages $48
A U. S. automation made shirt cost $50
No import, no tax revenue, minimal new jobs and a shirtless working class.

Paul Hunter

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