Should all imports be taxed at the border? | The Tylt

Dataviz
Real-time Voting
Should all imports be taxed at the border?
#DontRuinEconomy
#MakeAmericaCompete
#MakeAmericaCompete

Here's the theory behind the BAT. Republicans want to make American exports more competitive through two actions—exempting American exports and placing higher taxes on imports. 

In the House Republican’s tax reform plan, the border adjustments are similar to a Value Added Tax (VAT). Both foreign and domestically produced products would be taxed, but exports—things made in America that are not sold here—would be exempt from tax. Higher taxes on imports paired with lower taxes on exports will theoretically cancel each other out, as demand increases for U.S. exports (they’ll be cheaper) and the U.S. will demand fewer foreign goods (since they’ll be more expensive).

In theory, the BAT would be able to make American exports more competitive without any harm to the American economy. 

Economists say this will result in a shift in exchange rates that will the offset taxes: In theory, the dollar will strengthen as a result of increased demand for cheaper American-made products. Then, as a result of a stronger dollar, American-made products won’t be so cheap and foreign goods will become cheaper since a stronger dollar increases purchasing power—offsetting the import tax.
#DontRuinEconomy

In practice, implementing a BAT would have clear negative impacts in the short term and experts doubt it will create jobs in the long run. It's more likely a BAT would hurt the American economy no matter what.

Economic theory says this won’t happen, because of the dollar’s flexibility. The GOP’s plan does contain other sweeteners, most prominently a cut in the corporate tax rate to 20 percent and changes to how businesses deduct equipment expenses. But either way, it’s hard to see how Trump wins. If Ryan’s proposal works as planned, the world economy’s relentless swerve toward equilibrium would make imports cheaper and erase any economic pressure to move jobs to America. And if the plan goes off the rails, the economy will likely be hit so hard that no one will be celebrating the fact that America is making stuff again.
#MakeAmericaCompete
imageSupportingMedia
#MakeAmericaCompete
#MakeAmericaCompete
#DontRuinEconomy
#MakeAmericaCompete
Post by Paula Mathis.
#DontRuinEconomy
imageSupportingMedia
#DontRuinEconomy
#DontRuinEconomy
#DontRuinEconomy
#DontRuinEconomy
Post by Sharisse Wright.
FINAL RESULTS
Politics
Should all imports be taxed at the border?
A festive crown for the winner
#DontRuinEconomy
#MakeAmericaCompete