12-22-2016, 11:44 PM
(12-22-2016, 11:13 PM)Warren Dew Wrote: <snip>
What we saw in the 1970s was that without the spur of international competition, US industries became inefficient and their products dropped in quality while increasing in price. That's how the Japanese got a foothold in our auto market, of which they own a substantial fraction now. In the medium to long run, you need competition to maintain your edge.
Trump's border tax won't affect Japanese auto makers or any other foreign entity, with the proviso they site the factories here. Japanese auto makers have already done this, so it's just as easy for Foxconn to make their Ishits here. The fact is, since pretty much everyone other country has a VAT, then I see no reason what so ever to keep US workers disadvantaged by the established global trade rules as they currently exist. I'd also use the proceeds of border tax/VAT to replace the payroll taxes. Now that would enhance the competitive advantage of work done in the US even more!
And, I have an even more awesome tax idea. Let's tax imported oil to cover the externalities of our stupid wars of choice in the Middle East. 
The tax needs to be such that it covers the entire costs of bases/ammo/soldier pay/ etc. I bet if folks had to pay straight up and thus knew the true costs, those wars would end, post haste. Peace out and lick the toads as they march by.
---Value Added