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Ultimate Clemson Legend [98658]
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Word on the street...
Aug 27, 2018, 10:46 AM
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Trump has stuck a deal with Mexico on trade. I hope this doesn't make a mark on the midterm.
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Heisman Winner [86442]
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TigerNet Legend [146410]
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Did they finally agree to pay for the wall?***
Aug 27, 2018, 11:03 AM
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Tiger Titan [48540]
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did he ever say he would get Mexico to
Aug 27, 2018, 11:15 AM
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"agree" to pay for it?
if the net to the US treasury of the trade negotiations with Mexico is $$Billions, would that satisfy you?
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Ultimate Tiger [33730]
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How are you going to measure the net effect...
Aug 27, 2018, 11:29 AM
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to treasury income directly from trade account changes?
To get billions in additional revenue, it seems the trade balance change would need to be in the trillions.
Direct impact from corporate taxes would work like:
Assume 5% profit margin on top line sales (just for discussion's sake)
21% corporate tax rate on those profits
That's about 1.1% rough revenue impact from trade balance increases.
So, for example, a $20BB trade account change in our favor would bring about $220MM in additional revenue from corporate tax (an example with a lot of assumptions).
You would also need to measure the impact from individual income taxes of employees, but that seems like a really hard thing to measure that directly.
Anyway...my point is that changes to the trade accounts does not equate to the same amount in treasury revenue.
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Tiger Titan [48540]
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I agree with that***
Aug 27, 2018, 11:35 AM
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Ultimate Clemson Legend [98658]
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I don't know chit about high finance.
Aug 27, 2018, 11:38 AM
[ in reply to How are you going to measure the net effect... ] |
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It seems that if our corporations are exporting with lower taxes by those buying them they would generate bigger profits and their corporate taxes would increase. I'm not insinuating that it would approach the amount generated by increasing corp tax rates but it must be fairly significant.
I understand that it's naive to think that they will not find ways to hide the extra profits.
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Ultimate Tiger [33730]
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Have to say....
Aug 27, 2018, 11:40 AM
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I didn't follow any of that
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Ultimate Clemson Legend [98658]
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OK, try this.
Aug 27, 2018, 11:48 AM
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If foreign governments don't tax or decrease taxes on imports coming from America then the price of American good will decrease in foreign markets.
True [ ]
False [ ]
If the prices of our goods decrease then more of our products will be sold in foreign markets.
True [ ]
False [ ]
If more products are sold then more would have to be produced here. If that is true then more Americans would go to work and make more money for those who produce exports.
True [ ]
False [ ]
Tax revenue increases from employee taxes and corporate taxes?
Other than a ton of sophisticated high finance talk what am I missing?
Message was edited by: ClemsonTiger1988®
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Ultimate Tiger [33730]
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Where you're using the term "tax"....
Aug 27, 2018, 5:20 PM
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are you referring to duties/tariffs?
Assuming you are, I would answer your questions as follows:
"If foreign governments don't tax or decrease taxes on imports coming from America then the price of American good will decrease in foreign markets."
Depends on how elastic the market is, among other things. Lowering import duties doesn't mean that the supplier is going to lower the end selling price. They might...the might not, depending on all kinds of factors. But it does mean that they have the opportunity to. We all love to use very simple examples for this kind of stuff, but it's not so simple.
"If the prices of our goods decrease then more of our products will be sold in foreign markets."
Maybe
"If more products are sold then more would have to be produced here. If that is true then more Americans would go to work and make more money for those who produce exports."
True
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Heisman Winner [86442]
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Simpler:
Aug 27, 2018, 12:09 PM
[ in reply to Have to say.... ] |
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If Trump is involved, it will be better because he has gold nuts.
As an aside, NAFTA and GATT were the driving forces behind the economic prosperity in the 90a.
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Ultimate Clemson Legend [98658]
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^ sick of winning
Aug 27, 2018, 12:15 PM
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Heisman Winner [86442]
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Ultimate Clemson Legend [98658]
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Orange Blooded [2013]
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