Currently 90% of income tax is paid by individuals. Corporations pay these taxes indirectly through higher employee costs - wages must be higher to cover the 25-35% tax burden on employees. If companies could reduce employee costs by 25 to 35% and imports were more expensive due to tariffs, that would incentivize companies to make product in the US. Think of the benefits - companies would make more money and pay more corporate taxes. Employment would rise, reducing social welfare costs. Employees could be paid less by not paying 1/3 of their income to the government, reducing costs and allowing prices of domestic products to be lower, benefitting US consumers and making US products more competitive globally; though I would expect retaliatory tariff to be imposed on US goods by other countries. However, I believe the impact would be biggest on countries with which we have large trade deficits - China ($346B), Mexico ($100B), Japan ($69B), Germany ($67B) and Canada ($27B).
Although it sounds crazy at first, I think this idea deserves some critical analysis. It just might be crazy enough to work!
The only issue is that it takes many more years than 4 or 8 to rebuild and restructure an economy of this size. And that's assuming EVERYONE is on board and working to those same goals instead of trying to tear it all down or bastardize it beyond recognition again after those 4 to 8 years are up.
We've been in the dismantling phase for 8 years already, this was the natural breaking point for fiat. We have little choice but change as the old system is braindead on life support for just a bit longer.
Currently 90% of income tax is paid by individuals. Corporations pay these taxes indirectly through higher employee costs - wages must be higher to cover the 25-35% tax burden on employees. If companies could reduce employee costs by 25 to 35% and imports were more expensive due to tariffs, that would incentivize companies to make product in the US. Think of the benefits - companies would make more money and pay more corporate taxes. Employment would rise, reducing social welfare costs. Employees could be paid less by not paying 1/3 of their income to the government, reducing costs and allowing prices of domestic products to be lower, benefitting US consumers and making US products more competitive globally; though I would expect retaliatory tariff to be imposed on US goods by other countries. However, I believe the impact would be biggest on countries with which we have large trade deficits - China ($346B), Mexico ($100B), Japan ($69B), Germany ($67B) and Canada ($27B).
Although it sounds crazy at first, I think this idea deserves some critical analysis. It just might be crazy enough to work!
It would kneecap the ultra rich who are outsourcing their slavery to Asia. I call that a win.
Good to see others who get it
https://media.scored.co/post/zEVkjddQTwQJ.jpeg
The only issue is that it takes many more years than 4 or 8 to rebuild and restructure an economy of this size. And that's assuming EVERYONE is on board and working to those same goals instead of trying to tear it all down or bastardize it beyond recognition again after those 4 to 8 years are up.
Some things would take 4-8 years. Things in high demand would appear quicker.
We've been in the dismantling phase for 8 years already, this was the natural breaking point for fiat. We have little choice but change as the old system is braindead on life support for just a bit longer.