CEOs of 16 U.S. companies urge Congress to pass border tax
Source: Reuters
Tue Feb 21, 2017 | 11:36am EST
By Ginger Gibson | WASHINGTON
Chief executive officers of 16 companies, including Boeing Co (BA.N), Caterpillar Inc (CAT.N) and General Electric Co (GE.N), have urged the U.S. Congress to pass a comprehensive tax code rewrite, including a controversial border tax.
In a letter to Republican and Democratic leadership on Tuesday, the CEOs said a Republican-proposed border adjustment tax would make U.S.-manufactured products more competitive abroad and at home by making imported goods face the same level of taxation. It was the latest move in a back-and-forth lobbying effort from companies over changes to the tax code.
Republican House Speaker Paul Ryan has proposed lowering the corporate income tax to 20 percent from 35 percent, imposing a 20 percent tax on imports and excluding export revenue from taxable income.
The proposal has drawn opposition from large U.S. corporations that require imports, like retailers and auto manufacturers. Those that export much of their output tend to support the tax code changes.
Read more: http://www.reuters.com/article/us-usa-congress-tax-idUSKBN1601E8?il=0
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other countries really have no choice but to retaliate. they can't just say to their businesses that export to the u.s., hey, just deal with the fact that your prices are now effectively 20% higher and your sales will plummet.
*even if this is a good idea*, at best it's only a good idea in a few years, after the u.s. can rebuild its ability to replace domestically what we currently import. in the meanwhile, there would be people and businesses would pay through the nose, and adapt buy simply buying less.
i.e., a serious economic contraction.
but hey, 16 companies that only see the upside from less foreign competition might see a rise in profits, so hey, i guess that makes it all worthwhile. 
But outside of produce out of season, certain spices, and coffee, most food is domestically-produced, albeit with migrant labor. (And that's a big "albeit."
. And I imagine foodstuff would get exempted.
Where the price of things would really go up consistently would be consumer goods and clothing, only a small fraction of which is produced domestically.
It would turn out to be effectively a sales or consumption tax, which is both good and bad.
A consumption tax more effectively targets the rich (as opposed to the high income, which is related, but not the same thing). It would be a personal incentive to stop all the waste in our consumption-driven society.
And, by the nature of rich people buying rich people things (e.g., I love my imported coffee), it's progressive.
So, while Trump's motive here is stupid nativism and protectionism (and there is nothing wrong with protecting domestic workers -- they have been legit screwed), the result is OK.
Use his stupidity for our ends.
