Quote:
Originally Posted by Evil_inKarlate
I was thinking something along the lines of a broad-based 2% - a source of operating funds for government with an admitted hint of protectionism, rather than something like a (presumeably narrow, but perhaps not) 10% - a protectionist measure with an added bonus of government revenues. Thank you for pointing out the possible inconsistency tho. (And if you consider even 2% to be protectionist, please feel free to pursue the point, as I'm quite open to learning something and changing my position(s) if appropriate.)
As opposed to out current tax on saving, which it would replace?
Thank you again, tho, for the interesting viewpoint, which I hadn't considered before.
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I would still consider it protectionism, whether it is intended or not. The two percent tax rate raises the cost of imported goods by two percent thus making them less attractive relative to thier domestic counterparts. You could argue that this increase is insignificant but I would still say it is protectionism. This, of course, does not mean that the policy cannot be justified it just has to be understood that it is a mild protectionism.
Unfortionatly, to the best of my knowlege, every taxation policy beyond a pigovian tax (for example a pollution tax) ends up being a tax on consumption, income or savings. In import tax has the advantage of levying part of the tax on foreign companies but these policies tend to be recropricated making it so foreigners tax American companies.