How tariffs are harming US companies - a thread

[Airyaman]

I'm creating this thread to highlight what tariffs are doing to US companies instead of creating news ones for each instance.

Understand that big companies can do some absorption of tariffs, and also have better leveraging power with their foreign suppliers.

So in the end, while larger corporations may be able to muscle through Trump's tariff bullshit, smaller companies will be the ones most in danger.

And in our first example, a company that has been around for 99 years.

Time runs out for nearly century-old Michigan clock company due to tariffs, other factors

The Zeeland-based manufacturer, 175 miles west of Detroit, has sought a buyer but so far hasn’t found one.

www.nbcnews.com

Now, to be fair, tariffs aren't the only reason this company is being forced to close. The other is that a poor housing market means less furniture is being sold. Clocks are considered a furnishing.

But would the company make it without the tariffs? They seem to have a 99 year history that says "yes".

 

[NatMorton]

Where does this wisdom go when the discussion turns to raising the corporate tax rate?

 

[TobyOne]

Somehow, liberals try to maintain in their head that tariffs bad, business taxes good.

Where does this wisdom go when the discussion turns to raising the corporate tax rate?

 

[Questerr]

Where does this wisdom go when the discussion turns to raising the corporate tax rate?

Because corporate taxes are income taxes and not the same as tariffs, which are sales taxes.

The tax incidence rate of sales taxes are nearly 100%.

 

[Questerr]

Somehow, liberals try to maintain in their head that tariffs bad, business taxes good.

Yes. Progressive income based taxes are good and regressive flat taxes and sales taxes are bad.

 

[NatMorton]

Somehow, liberals try to maintain in their head that tariffs bad, business taxes good.

That's unfair. They'd be in favor of tariffs if they were the policy of a Democratic President.

 

[CLAX1911]

That's unfair. They'd be in favor of tariffs if they were the policy of a Democratic President.

They didn't seem to complain about it under Biden.

 

[Questerr]

That's unfair. They'd be in favor of tariffs if they were the policy of a Democratic President.

Usually because democratic presidents don’t have idiotic policies like Trump’s.

Did Biden call for blanket tariffs on the entire planet like a moron?

 

[Airyaman]

Where does this wisdom go when the discussion turns to raising the corporate tax rate?

Make your own thread.

 

[TobyOne]

Wrong. Tariffs are taxes on the entity that import the good. It contributes to operational expenses. Just like corporate or business taxes.

Because corporate taxes are income taxes and not the same as tariffs, which are sales taxes.

The tax incidence rate of sales taxes are nearly 100%.

 

[NatMorton]

Make your own thread.

No thanks, I'd rather ridicule the hypocrisy of yours.

 

[Yes_Minister]

That's unfair. They'd be in favor of tariffs if they were the policy of a Democratic President.

I live in Canada, and we would hate Joe Biden as much as we hate Trump if he tried to mess with our economy with tariffs. Trump is the one torching the US's reputation with its allies, not Biden.

 

[Questerr]

Wrong. Tariffs are taxes on the entity that import the good. It contributes to operational expenses. Just like corporate or business taxes.

Tariffs are sales taxes. They are inherently regressive and close to 100% of the cost of the tax is transferred to the price of the good.

 

[Airyaman]

Wrong. Tariffs are taxes on the entity that import the good. It contributes to operational expenses. Just like corporate or business taxes.

Corporate taxes on levied on profits.

 

[TobyOne]

So? Are you saying taxes aren't expenses?

Corporate taxes on levied on profits.

 

[aociswundumho]

That's unfair. They'd be in favor of tariffs if they were the policy of a Democratic President.

Exactly.

2019:



2024:

 

[Airyaman]

No thanks, I'd rather ridicule the hypocrisy of yours.

Since I never mentioned corporate taxes, that would be an exercise in futility.

 

[rickc]

The real effect of trump's tarrifs haven't even hit yet.
His 90 days has run out and he is about to strangle American companies that import the majority of their good. That is just about all of them.

 

[Questerr]

So?

So their tax incidence is very low. Most of the cost cannot be transferred to prices.

 

[NatMorton]

I live in Canada, and we would hate Joe Biden as much as we hate Trump if he tried to mess with our economy with tariffs. Trump is the one torching the US's reputation with its allies, not Biden.

I'm not sure our reputation was in great standing after that horrendously botched evacuation from Afghanistan, but we digress.

 

[Questerr]

Exactly.

2019:

View attachment 67579446

2024:

View attachment 67579449

And at the same time, Biden implemented policies to subsidize the US industries competing against China.

 

[NatMorton]

Since I never mentioned corporate taxes, that would be an exercise in futility.

Those of us on the right look forward to your support when it comes to lowering the corporate tax rates.

 

[Questerr]

Those of us on the right look forward to your support when it comes to lowering the corporate tax rates.

Why should we do that?

 

[Airyaman]

Those of us on the right look forward to your support when it comes to lowering the corporate tax rates.

Start your own thread.

 

[NatMorton]

Start your own thread.

My, my, aren't we bossy today.