Politics

Out of context: Reply #24170

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  • HijoDMaite2

    I'm going insane trying to understand this damn 20 percent tax on imports from Mexico!

    So does trump plan on a 20 percent tax on goods from Mexico mean that if Mexico sells us 1000 avocados for $500 they will now only get $400 from us? Or does it mean that the 1000 avocados will now cost us $600. How is that good? Is it because now we may buy California Avocados because they are about the same price?

    So how would that work if I want to buy Tequila from Mexico? Do I pay $120 per bottle at Costco instead of the $100 per bottle I used to pay at Costco? And am I stuck paying that because Arizona or California do not make Tequila??

    And so what about the Korean TVs made in Tijuana (Samsung) and the German Cars made in Mexico (Mercedes), do they go up in price to us? How do we Americans get around not having to pay extra for those two brands? How would this motivate Mexico to pay for the wall??

    And how is this different then when Americans were up in arms because England wanted to tax Americans for tea from India? Is it because at that time England was going to get the extra tax money and in this case it goes back to our federal government? To fund projects like the wall? That means we are still paying for the fucking wall!! It makes no sense.

    I really hope this was just Trump talking out of his ass making a super complicated thing in to a simpleton tagline and there is actually a lot more thought put in to it.

    HijoDMaite 2Permalink
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    • Trying to make sense of the whims of an idiot man-child is an exercise in futility. It makes no economic sense whatsoever, and illustrates the orange clown's...BuddhaHat
    • total lack of comprehension of the intricacies of foreign trade.BuddhaHat
    • Prices for fruit, veg, cars, plant & equipment, booze, all sky-rocket as a result of this plan. It's even unlikely to create additional jobs in the US.BuddhaHat
    • Approx 6 million US jobs depend on trade with Mexico.BuddhaHat
    • I think Economics is a fascinating field and I would like to understand how this would work. Unfortunately I don't think we have enough info...HijoDMaite
    • Prices go up inordinately, disposable income drops, economic activity drops, economy slows, uncertainty increases ---> recession/depression...BuddhaHat
    • from the administration as to what exactly they meant when Spicer mentioned that 20% number.HijoDMaite
    • 80% of Mexico's exports go to the US, so that would significantly dampen economic activity in Mexico as well. It's the opposite of intelligent economic policy.BuddhaHat
    • The idea that was originally floated was a 20% tariff on 'goods from Mexico'... that covers everything.BuddhaHat
    • He could also cut funds to Mexico or do a remittance tax and make an easy 2 billion on money sent out of the USA to Mexico.robotron3k
    • The point is it is suppose to hurt Mexico and there fore they cave. But I still don't see how it hurts Mexico.HijoDMaite
    • I know there are a bunch of ways but i was just focused on this 20 percent idea.HijoDMaite
    • I'm guessing it would be like any an import tax. Where the buyer pays the import tax, which then sells it to the consumer at a higher cost.
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    • I've seen this in action in the UK. where heavy custom taxes and duties are imposed on items imported from the US
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    • Usually this causes the customer to shun the higher cost item for a lower cost competitor. Sales from Mexico would drop, allowing other competitors to take over
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    • Setting up shop in America would create many financial advantages compared to Mexico.
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    • In addition to cost. It would also prevent drugs from being smuggled from Mexico to the US. Recently 3000lbs of pot disguised as watermelons was seized by US.
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    • This could also have environmental advances as transportation could be better centralized to fulfill shipments within the USA
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    • Items from Mexico can go from $5 to $6 to the consumer. However items can transition to $3.90 with a 35% discount.
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    • omg - you haven't seen anything in the action in the UK you dimwit. you haven't left your basement. Fox News isn't life experience.fadein11
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