There is a similarity between tariffs and corporate income taxes. Tariffs will never replace those taxes because the dollars collected via corporate income taxes are 4-5x the estimated total collection of tariffs. Yet, they have similar impacts on the economy, through potentially higher prices, and corporate operations, decisions on raising prices vs. absorbing the costs. Many who are today criticizing the tariffs as inflationary would have likely applauded increases in corporate income taxes. Would you have considered higher corporate taxes in lieu of tariffs to be inflationary?
Thatās different becauseā¦uhā¦umā¦uhā¦TRUMP IS HITLER!!!
All business expenses are paid for by the consumer, but for some reason lefties only care about Trumpās tariffs.
And thereās your dinner!
The end user always pays.
I know there is no inflation at all and that there has not been any for a very long time. I know this because Costcoās hot dogs have been priced at $1.50 and their rotisserie chicken has been priced at $4.99 forever.
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Thatās my point. Anytime anybody has said anything about increasing corporate income taxes, we are flooded with the answer ācompanies donāt pay taxes, itās passed on to the consumerā . I am now wondering and tryig to under stand how a tariff, that is a tax, is the one tax that a company wonāt eat because now i am flooded with repsonses of āwell the CPI was only 2.7%. I am also told that tariffs donāt impact inflation, again with that big beautiful CPI number tossed in. So if companies are having to pay a tax (tariff) which is an increased cost, yet the CPI is still 2.7%, what are the companies doing with those tariffs, and why are tariffs the only tax that is not passed on to the customer. I could understand a smallish tariff being absorbed by the company, but we have ā25% TACOā throwuing around double and triple digit tariff numberes.
And the sad part for everybody - when Trump is out of office, is there any guarantee that the next president, GOP or Democrat, will keep the tariffs in place. If they donāt and they roll them back, there is a funny thing Iāve noticed about companies and pricing - if there is an increase in costs, they are usually always passed on to the customer, but when there is a decrease in costs, prices rarely come down.
And Arizona Tea is still .99
The tariff is on the cost of an item when it enters the country, not the retail price. If a pound of green coffee beans cost $3 before the tariffs it would be $3.75 a pound after a 25% tariff.
I have to admit I donāt bargain shop for groceries. I was never one to drive 3 miles because I had a 50 cent off coupon, nor do I have a Costco membership, I have no need to buy in bulk, except paper products and I get that delivered to my door from Amazon. I know prices got higher 2 or 3 ago under Biden, but know we were coming out of a pandemic when things were shut down and shelves were empty in some stores, and I saw stickers saying Biden did this. Now with losing a lot of our work force and Tariffs upcoming will I see any Trump did this stickers or excuses for the orange man?
If that is the case then there is not enough competition in that industry.
When has there been a decrease in costs?
Iām posting this although I know it will piss some of you off.
Three seconds in and I knew this guy was a twit.
No need for me to waste another 8 minutes.
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End welfare for able bodied people, they can pick the crops. Thereās two problems solved.
Cause an insurrection even though the FBI said there was no insurrection. lol
Did he talk about that? I didnāt get that far, the fact that he couldnāt differentiate between legal and illegal immigration and then used the words āwhite, right wing nutsā
This reminds me how unequivocal Clark Howard used to be (and maybe still is?) about corporate taxes.
āThe corporate tax rate should be ZERO.ā
And he was right.
I agree, the owners/shareholders pay taxes when they get a distribution.
The tariff is not based on the store price. It is based on the import price. Mexico farmer sells to mexico wholesaler. This wholesaler sells to US firm. That firm then sells it to distributor when then sells it to the grocery store and charges you this final price. The value of the tariff was calculated several parties before you at a much small price because along the way, the each person gets their profit markup.
If a company owns both sides of the border, they set the price that they sell to themselves. Maybe ford makes a maverick in mexico and sells it to Ford USA for $8K. Then ford USA sells it to the dealer for $18K, then the dealer sells it to you for $25K. The tariff is based on the $8K import price and not your $25K purchase price.
The next thing to consider is the currency exchange rates. In the ford example above, it the mexico peso falls to the dollar, the markup on the international sale can happen at a smaller amount (in USD) that will dampen the total tariff cost to the end consumer.
There is way more to it then just saying my coffee went up 25% due to tariff. If the tariff is 25% and you pay 25% more then the supply chain and vendor is gigging you for more than the increase of the 25% tariff.
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I dunno. There was this thing called the āTax Cut and Jobs Actāā¦something our dear leader called wanted to call the āCut cut cutā bill. One of the things it did was cut the corporate tax rate from 35% to 21%. Did any items at Costo or any other place go down 14% since then? I saw a lot of stock buybacks, but prices remained pretty much the sameā¦it was damn near as much as Bidenflation increased them. Youād think with all those savings,they could have done something to make things more affordablel
https://taxpolicycenter.org/briefing-book/how-did-tax-cuts-and-jobs-act-change-business-taxes