20% Tax

The way I see it, if a 20% tax is placed on items imported from Mexico, that tax will be passed on to the American consumer. That means that if I go to buy a car that was made in Mexico, it will cost me more. Can someone please explain to me how this is Mexico paying for the wall and not me?

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Listen here you put jeep motherfucker I'll kill your ass Nager

I appreciate your position, but it doesn't answer my question.

Truth

Because seeing that the Mexican made car costs more than the American made one, you'll buy American.

The government can then collect tax from the American company on your purchase, something it couldn't do to the Mexicans.

Also, a non negligible number of Americans will be able to work in that factory and get off welfare.

Meanwhile the Mexican factory defaults.

Et voilà, Mexico has effectively paid the wall.

Shhh just dont think about it and it will make sense

Because Mexico pays 20% for every transaction? If the seller thinks buying expensive Mexicant shit is better, then by all means American made products will fly off the shelves.

Buy Mexican cars then?

Did you know even though we have American companies making their cars here in Mexico we still pay the same for them as if it was exported from the US?

They are literally exploiting us.

Sorry, I mean buy American cars.

Because the tariff influences your consumption choices. Most people will buy American to save a couple thousand dollars. This increases the number of factory jobs in America, and decreases consumption in Mexico. Tariffs work as long as the host country makes the product as well. In effect, American cars will sell more because of the tariff, and Mexicans cars will sell less. Factories will also move back to America from Mexico if the individuals companies decide that they can make more by paying American workers to create the cars, if that expense is less than the tariff expense. (pro-tip, it will.)

Too bad you're non-human so it's not actual exploiting rather just taking what's ours.

all taxes are paid in the end by the people
more tax = less freedom
creating/increasing more taxes leaves the door open for even more taxation
land of the free?, home of the taxpayer

If the stuff from Mexico costs more, American products will do better. If American products do better, more jobs are made for Americans.

The point is that you don't buy cars made in Mexico. Buy American and kill the Mexican economy, thus forcing companies to shut down plants in Mexico and move back to America.

Mexico will suffer, America no more.

A Mexican company that sells goods to an American buyer can't suddenly and arbitrarily increase their costs by 20% - because the buyer won't buy from them and will instead just move to a competitor.

That means the companies that suffer the most from a tariff are going to be Mexican, not American.


See how long Mexico holds out on not paying for "that fucking wall" after a few thousand workers lose their jobs.

Declining economy always means more civil strife, in an already unstable country. Essentially, Trump is committing to the first step of economic warfare. Let's see what he does to China, next.

Have you notice that liberals are the ones who making a big deal over this tax? Also, I thought president Trump is still deciding on it.

What goods do we get from Mexico anyway? Avocados?

>2017
>Mexico paying for a wall

Didnt trump ask for funds from congress to start on the wall. Uhhhhmmm

i wonder where congress gets the money. american tax payers.


yepp. sounds like Mexico is paying for the wall alright.

remember mexico is poor and doesnt have any money. (^:


tt-t-thanks mister trump.

So the idea you're proposing is that the 20% has nothing to do directly with paying for the wall. It is merely a means to steer people away from purchasing cars made in mexico, and instead buy cars made in America. The one hitch is that typically when buying a car I can't request the dealer sell me a car that was built in one place and not another. If a car company manufactures cars in various places, one of them being Mexico, do we just not buy from that car company?

This is 100% wrong
you should take even an entry lvl econ class and youd know taxes are paid by producer and/or consumer depending on elasticity

Think about this one:

Even if it works and you believe the magical-thinking that claims you aren't paying for it? All it does is hurt the Mexican economy. Illegal aliens enter the USA to escape the Mexican economy. The tariffs will therefore increase the number of people seeking to become illegal aliens in the USA. The majority of illegal, Mexican aliens in the USA? They enter legally and just overstay their visas.

So this will hurt the Mexican economy. It will hurt your bank account. It increase the number of Mexicans wanting to work illegally in the USA. And in return? Someone wanting to get here has to buy a rope.

Foresight: conservatives are pretty bad at it.

The first tax that a liberal hates. Tax your Volk all day, but not another country, that's racist. Trump hasn't decided on it. He is in the bargaining phase. Mexico knows how stumped they'd be. They need us more than we need them, fucking avocados and all.

I guess one thing I see here is people saying "because of the tax, we will not buy from a Mexican company, and instead buy American", but if an American company has products made all over the world, it's not like it's really "an american product". One example would be what someone brought up here, Avacados. My local supermarket, an American company, gets it's avacados from Mexico. Therefore, are you suggesting I say "okay, I will not buy from Safeway" or are you saying I will instead not buy avocados?

It hits things from two different directions. 1.) Encouraging American manufacturing instead of Mexico and 2.) Using tariff money to pay for the wall.

Obviously, this is only 1 of several methods that Trump has proposed for paying for the wall.

The expenses are passed onto the manufacturer/seller so they will decide the final ticket price for the customer. The consumer can then choose which item they wish to purchase. It makes perfect sense.

The US funded itself almost exclusively by tariffs for a lot of its very early history. It provides a great incentive for people to start up those businesses here in the States instead of going elsewhere.

lolwut

>mexican cars

i can name a few american / japanesse car makers. i cant name no "mexican cars".

did you go full retard? guess who owns the car factories in mexico. take a wild guess.

it aint mexico. we are only cucking our selfs.

La Reconquista is going to be one cruel mistress for you, Paco.

...

that just could ruin the car industry in Mexico, u never pay that because u'll not have the chance to, car sellers will not buy that cars and sell only americans. we did the same here to protect the catalonian cloth industry in the XIX

By mexican cars, I obviously mean all of the Fords, and GMs that get made in Monterrey instead of Detroit.

>Not underestanding that Tariffs cause foreign products to equalize to locally produced goods

Like a true American


How do you think Australia was unaffected by 2008? Because we've been doing for 30 years what trump is making you do now :^)

Probably not, because of how much Mexico relies on murrica for trade. I bet tequila breweries and farmers would still sell to Murrica despite the tax because they have almost no other customer. They might make less profit, but the alternative is no profit

How about don't buy a piece of shit car made in Mexico?

that's the goal

But if GM makes cars in several places, one being Mexico, I can't go to a dealer and specifically request a car built from a specific factory, can I? It sounds like I have to just ditch GM completely.

obviously you dip.

WE make cars in mexico.
WE own car facotories in mexico.
WE export said cars made in mexico.
WE are going to to end up with the bill for a useless wall.

but the car industry in Mexico is american and German.

Don't buy anything from Mexico then you dumb cuck.

Additionally, that 20% tax would be spread across all the cars they sell, regardless of where they were made, so buying a car made in a different plant wouldn't really do anything, I'd have to ditch GM completely.

Trump don't care about the owner, just the jobs and he want all back to the US

Americans should pay for the wall. Why do you have a right to Mexico's money? Do I have a right to come to you and demand you pay for my medical care? How about if I demand you pay for my new car? Isn't an infringement on my freedom to be forced to pay for something like this?

Okay so I see, this will essentially force auto manufacturers to shut down their Mexico plants, thereby hurting Mexico's economy, and that's why the Peso plummeted today.

They looks like they're getting ready to take a shit. Everytime a female does that pose it just looks like they wanna shit.

then how are you going to make Mexico pay for the wall?

>it will increase the amount of illegals

Thank goodness we're building that wall then, pedro.

>Additionally, that 20% tax would be spread across all the cars they sell, regardless of where they were made, so buying a car made in a different plant wouldn't really do anything, I'd have to ditch GM completely.

This is generally a good idea, though. Americans don't make good cars.

Yes, you can ask where your car was made and they will tell you. Also you can look it up online. These aren't national secrets. Nation of manufacture is well distributed info.

Are all cars made in Mexico? If the added cost is truly inconvenient, consumers will choose more cost effective options. Producers will chase consumer dollars.

What products are exclusive to mexico that arent tequila? Buy a car made somewhere else.

The producer/source would pay it at first, yes, but that's immediately applied to the final price the customer pay for the good/service, discriminated or not, which will net zero for the producer/source.
In the end, any kind of taxation is oppression.

>The way I see it, if a 20% tax is placed on items imported from Mexico, that tax will be passed on to the American consumer.

That depends if mexican merchants are able to to toss their merchandise OVER the wall.

>buying cars made in Mexico

Americans buy products made in the U.S because it is cheaper, more jobs in the U.S because kike companies are forced to close down plants in Mexico and open more in the U.S. The U.S literally won't care about Mexico anymore and seeing that the economy is just going more and more down the toilet, Mexico will crack and offer to pay for the wall as an apology for all the drugs and crime and hope that Trump will allow fair trade deals between eachother. That's my take on it.

then don't buy a car made in mexico?

Cars are like airplanes. They have parts in them made from all over the globe.

when you see that of two cars, they both have the same options, but one is roughly 20% more expensive, i'm sure you'll figure it out.
or not. buy us a wall, fag

it's not

trump fucked up on this one - even the best make mistakes i guess

Why are Americans trying to steal jobs back from Mexicans? Why don't you let Mexicans make your cars so you can make spaceships and nukes instead?

we're not. What's going to end up happening (if the 20% tariff gets passed) is that Mexico will raise the price of its products, Americans will buy them less, and Mexico will lose money

Not sure if it would be more beneficial for Mexico to pay for the wall, or to raise its prices

American tax payers also bailed out some banks a few years ago in the trillions of dollars

Nobody cares, the wall is nothing by comparison

forbes.com/sites/mikecollins/2015/07/14/the-big-bank-bailout/#7f841ca63723

Stop buying pinatas and corona? Beer you have to shove fruit into is shit anyhow.

The price increase will create an incentive for American producers to make the goods instead of Mexico. In the long term, there won't be any net increase in price.

Because fuck them and their sombreros.

I guess it's more like this:

- Mexican imports are labelled with are 20% tax
- Importers will probably hesitate buying from mexican producers since they will have to pass the rise in price they are paying the mexicans to the final consumer, and on the consumer's side, when the consumer gets confronted with the new prices, they will probably search for alternatives, effectively sending a message to importers: don't buy mexican products if you don't want to risk to lose your money.
- Importers will stop buying mexican products and the mexicans will be left with their production to search for new places where to sell. If they don't manage to find new markets for their products, they're doomed.

i have a question about american work.
if the illegals leave wont it be harder for farms to adapt? i would never work in a farm desu kek need an answer to red pill friends.

If we roll back more financial regulations this won't happen again. The banks will act prudently and ensure that their books are balanced and they're not knee-deep in toxic assets!

t. GOP

>Mexican tries raising prices 20%
>Goods now more expensive than American made
>Factories move to US
Or
>Mexico only raises prices x%
>Mexican companies lose 20-x% per unit
>Factories move to the us
Or the most likely
>Mexico backs down and just pays for the wall

Mexico inevitably pays. You pay more, they pay even more, the wall is inevitably payed off.

In the short-term? Sure. In the long-term, not really. If anything, it'll spur capital investment into the sector and incentivize automation.

fpbp as always

this

no really this

America with the bantz as always

the Mexican president is a narco puppet, mexico benefits from illegal immigrants, its a political pressure valve, why keep the people that hate him there when they can escape to usa to collect gibs? he gets to stay press, collect people money, run away with it and fuck over the neighbor. hes a genius he wont cave, hes set for life after this.

Why are burgers such great posters

kek

topkek

this will take lots of time and will make smaller business fall though, rather cold way to rationalize progress.

2 identical products
>made in mexico - $18,000
>made in USA - $20,000

Trumps new tax takes effect
>made in mexico - $21,600
Factories reopen in usa/people choose American products since they're now cheaper

You know who's going to end up paying for the wall? China.

They will show up right at Mexico's doorstep right after the US willingly abandon its commercial influence over them.

Before you know it, Mexico will be trading in Yuan instead of US dollars, and Chinese troops helping them "fight the narcos".

bottomlel

...

Modelos lol

yuck

So if I have 2 cars same make and model and one is from Mexico it will be 20% more? But isn't mexico already paid to make the cars how would it hurt them? Won't it hurts the maker? In the end they will eat the tax cause it will be cheaper to move back to the states and pay American workers

I like you.

>that tax will be passed on to the American consumer
only if the product is 100% price inelastic

How the fuck do think Mexico is paying 20%? By getting that 20% from Americans.

Where do think a fuck ton of our produce comes from? If you're happy paying more to eat so that you get a useless wall then you're fucking retarded.

#MAGA

You're not very bright, are you? The outcome is:

>Manufacturers stay in Mexico because even with the tariff its still cheaper than the US
>some firms shut down because they can't afford the tariff
>some firms do layoffs because the tariff eats at their profits
>several consumers have lower quality of lives because they cant afford as many nice things
>net negative effect to the US economy
>Donald Trump's economics are still bad

Congratulations, Sup Forums. Sure am glad I have a trust fund so I'm not going to get fucked by this dumbass.

It is true that you don't know at first glance if a car is made in Mexico or the US, but you sure notice the price.

The company can either decide to eath the 20% loss on the cars they make in Mexico, or to close that factory and (re)open one in the US.
Their call.

If they keep the Mexican factory, they probably will do so by negotiating lower wages for the workers or lower taxes with the Mexican government.

And once again, Mexico is paying.
That's literally what I just said you fucking tard.

>we give X billions / year to mexico
>trump is elected
>we now give X-(wall money) billions / year to mexico until The Wall is fully funded

thats about it, nothing special

That's still not paying for the wall.

shut it.
you took our jerbs

It will still be cheaper to make in Mexico as the pay the workers pennies.

Thats.. the whole fucking point.

You should be buying AMERICAN.

I can't tell if this is serious, unintentional autism or intentional autism. Either way, you have autism.

>That means that if I go to buy a car that was made in Mexico
there's your problem

>any kind of taxation is oppression.

Libertarian 10 year olds.

great psot friendo

Why the fuck would you buy a car in Mexico while so many companies are returning to make America great again?