Thread by @unseen1_unseen

So tariffs are not a tax on consumers? It's simple, if companies can pass the cost along to consumers they will, if they can't they will eat the cost. So far,companies can't pass the cost along. In other words, the tariff talking point isn't always true.

breitbart.com/economy/2019/0…

The same can be said for any tax or regulation. Businesses pay taxes, fees, licences and other expenses. The amount of these expenses + other costs like labor they can pass along in the final price determines their profit and profit margin.

If the expenses and costs are more than they can pass along, they will go out of business sooner or later. If they are less the business makes a profit. The more costs they can pass along the bigger the profit margin.

Price is not the only way businesses can pass along costs. They can transfer the costs to other people and avoid the cost altogether. For instance, instead of paying higher wages they can have gov via welfare allow workers to work for less than a living wage or...

Companies can defray costs associated with the upkeep of a market (like taxes to pay for police, roads, bridges) by moving out of the market and importing their goods into the market. Both increase profit margins but both also increase taxes on consumers and grow government.

So as a society the question is which is more important. That companies make bigger profits or that citizen's taxes are less or workers are paid more. Of course, if taxes and regulations get to much, the company goes under.

This is why government even in the best of times is a necessary evil. It's necessary to balance the needs of the business sector with those of the workers and society among other reasons. It's evil because it has unlimited power and unlimited power always corrupts.

Talking points are nice for both sides like "tariffs are a tax on consumers", "businesses don't pay taxes" or "tax cuts are crumbs" or "stock buybacks are bad" but they are a form of propaganda. They are subjective information that tells at best only half the tale.

Creating policy on that propaganda is not a good way to run a country. Tariffs like any tax has it's place as a government tool. I'm not a fan of taxes myself but I understand the necessary need for some to keep society functioning. Taxes should be as small as possible.

If taxes have to be placed, I would rather the people who are trying to avoid taxes and not support our society are taxed (tariffs) more than those who do pay taxes like citizens that live here(income, sales, business taxes).