Republicans continue to promote policies that ultimately rip off the middle-class and the poor. This one is no different. Sadly it is cloaked in false rhetoric about bringing back jobs to America. Reich explains why it is a sham.
Another Trickle-down Tax Sham
Robert Reich wrote the following.
Watch your wallets. Republicans are pushing a new corporate tax plan that will end up costing most of you a bundle. Here’s what you should know about the so-called “border adjustment tax.”
The U.S. imports about $2.7 trillion worth of goods a year. Many imports are cheap because labor costs are much lower in places like Southeast Asia.
Our current tax code taxes corporations on their profits. So, for example, when Wal-Mart buys t-shirts from Vietnam for $10 and sells them for $13, Wal-Mart is only taxed on that $3 of profit.
But under the new Republican tax plan, Wal-Mart would be taxed on the full price of imported items, so in this case the full $13 sale price of that t-shirt. As a result of this tax, Wall Street analysts expect retail prices in the U.S. to rise as much as 15 percent.
https://theliberalnetwork.com/2017/02/19/republican-tax-sham/
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