White House press secretary Sean Spicer reported that the Trump administration was leaning towards implementing a border adjustment tax to pay for the so called wall. The border tax essentially taxes a corporation's imports ( by 20%) while subsidizing their exports, compared to the current system of corporate taxing which is taxes based on corporations net revenue. This is indirect taxing. This will result in a larger tax revenue as the country imports a lot more than it exports.
Some positive elements of this form of taxation is that it will encourage companies to produce goods in this country instead of importing. It will also encourage them to not move company production offshore as it will not tax corporate income. And technically Trump will be able to get money from mexico by taxing Mexican imports.
Some negative effects of this taxation is that prices on imports will rise to compensate for the additional taxes Trump will place. This taxation will also have negative impact on companies that are large importers
Questions:
Should corporations be taxed less?
Do you think the border tax would be effective? or should we stick to our current form of taxation?
http://www.economist.com/blogs/democracyinamerica/2017/01/taxes-and-tariffs
I think that this enormous wall has to have money coming from somewhere, so if we have to just accept the fact that it actually is happening then this seems pretty reasonable. Since Trump is following through with his campaign promises and effectively signed that executive order per se then this actually is happening so corporations should be taxed more to help pay for the wall and keep the jobs within the country. With our current taxation it would probably channel less revenue and people would be less inclined to support for this cause, so the sucker here is going to be Applebees.
ReplyDeleteI don't think we should change our current form of taxation, especially for a plan that might not go through to the end. Trump has been talking about this wall for months now, but there have been times where he has been hesitant about it. If we did change our taxes to gather enough money for the wall and the plan didn't go through, it would've all been a waste.
ReplyDeleteI don't understand why Trump wants to build this border between Mexico and the U.S. anyway. We should be building metaphorical bridges instead of literal walls. That being said, I do understand that in order for this plan to work, our new president needs to get that money somehow, and taxes are the easiest way to do so.
ReplyDeleteI believe that this is a reasonable form of gaining money in order to build the wall but I do not believe that we should go along with it. I believe that we should stick to our current form of taxation because I don't think this wall is important for us right now, also I feel like Trump wont go along with his plan fully due to him being full of nonsense.
ReplyDeleteI think that if Trump wants to build a wall, he shouldn't be getting the funds from corporations who may not even support the wall. Also think that if corporations were to be taxed, the border tax would be effective because they would receive more money.
ReplyDeleteI think changing the border tax will make items that are imported more expensive or countries won't want to export their goods to the US as often. I think we should just keep the current form of taxation.
ReplyDeleteI believe if Corporations were taxed less it would be easier to achieve the 'American Dream.' Even working for this company for 6 months I have seen how badly corporate America is taxed. I don't think that we as a country should be led into this wall tax without a vote or anything. Our current tax system is working fine, and we don't need to add a wall expense onto anyone's paycheck either.
ReplyDeleteIn order to help build the wall it is not right to use taxes to do so. Having people pay for the wall even if they do not support it does not make sense at all, it is a inhumane act to have someone contribute into something they do not agree with
ReplyDeleteThough there may incentives on benefiting trumps idea on changing the route of taxs forms. It is still an hassle to completely have the money to continuously fund the project. While their may be more complication then they will anticipate.
ReplyDeleteWhy make other people pay for something they obviously don't want at all. He should just stop this nonsense, if he wants this wall so badly he can pay it himself, didn't he say that he got a "small loan of one million dollars" so now that he is president he can get way more. Stop the stupidness Trump.
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