H.r. 369/s.328 - Passing tariffs on China to address the currency inequity

[CaptainGoodnight]

Corporations won't allow trade sanctions.

Some "Corporations", may benefit from it and actively lobby for it.

 

[Fern]

By this standard of 'taxes' you may as well start advocating the elimination of the minimum wage as its a 'tax' paid by Americans.

China has some particularly huge advantages over the US in terms of trade - no minimum wage, no environmental standards, no health and safety standards that make 'free trade' a joke. The currency manipulation is only the tip of the iceberg.

"By this standard of 'taxes'"

Seriously?

Tariffs are clearly a tax. Prior to the establishment of income taxes they accounted for about 90% of the fed govt revenue. It was how the fed govt was funded.

It's a tax on consumers.

Are you advocating that we attack the problems of China's lack of enviro standards, OSHA standards and min wage by taxing Americans?

Fern

 

[BoomerD]

"By this standard of 'taxes'"

Seriously?

Tariffs are clearly a tax. Prior to the establishment of income taxes they accounted for about 90% of the fed govt revenue. It was how the fed govt was funded.

It's a tax on consumers.

Are you advocating that we attack the problems of China's lack of enviro standards, OSHA standards and min wage by taxing Americans?

Fern

We COULD just stop ALL imports from China...or pass a law that prohibits trade imbalances with any country. If they want to sell us $1 Billion worth of goods, they have to BUY $1 Billion worth of our goods.



Yeah, that's gonna happen...

Of cours

 

[Infohawk]

I'm completely opposed to the notion that whenever there is some problem the solution must always be to tax people and thereby raise govt revenue.

Sometimes government intervention is the answer. This is one of those times.

 

[Phokus]

Some "Corporations", may benefit from it and actively lobby for it.

Maybe a smaller minority would, but the chamber of commerce would overwhelmingly squash such ideas.

 

[Fern]

-snip-
I see no practical alternative.

For some practical alternatives see here:

http://www.onemint.com/2009/01/26/how-does-china-manipulate-its-currency/

For one thing, our central bank can combat China's by using counter-measures to inflate the value of the yuan.

But our US govt is complicit in this problem. They need to borrow money from China because of deficit spending. That means China needs to buy US dollars so they can buy the bonds (loan back to the US govt). That means the value of the dollar goes up compared to the yuan. That means we have this current problem etc.

Wash, rinse, repeat.

Fern

 

[Fern]

Sometimes government intervention is the answer. This is one of those times.

Why should govt intervention be in the form of increased taxation?

Why doesn't our central bank get busy instead?

Fern

 

[werepossum]

We COULD just stop ALL imports from China...or pass a law that prohibits trade imbalances with any country. If they want to sell us $1 Billion worth of goods, they have to BUY $1 Billion worth of our goods.



Yeah, that's gonna happen...

Of cours

Easy fix - we put a tariff on everything imported based on the previous year's trade imbalance. If exports to Country 'X' exceed imports from Country 'X' by 1.05/1, its tariff for the next year is 5%. If imports from Country 'Y' are equal to or less than exports to Country 'Y', its goods have no tariff next year. If imports from Country 'Z' exceed exports to Country 'Z' by 2/1, its tariff for the next year is 200%.

Big importers would have to at least balance outsourcing across several or many nations to avoid huge cost increases, which due to competition could not necessarily be passed along, and American-made products would have a fair chance against all nations no matter their labor costs, environmental policies, human rights regulatory costs, etc.

Course, if I had my druthers I'd also add a small tariff to cover the costs of inspecting all imports for contraband, substandard and/or dangerous materials, and fake nation of origin labels.