Not sure about that. You would be correct if the employer's half was a full tax credit for the business, but it is only deductible. As such, the majority of this payment is a direct tax increase on the cost of its workforce.
OT: Stock and Investment Talk
- Thread starter RU-05
- Start date
As Tom Lee says, these artificial disruptions to the market are always buy the dip moments since they quickly resolve.
Disagree. A full tax credit would balance things if the employee's tax rate on the benefit was 100%. That's not the case.
International Trade
www.census.gov
Dec 2024 is not up yet.
2023 was $350B export to Can. $418B imported. Deficit of $64B.
That deficit has increased in recent years as we've bought more oil/energy. I'm looking for the breakdown on that.
I’m not an economist, but if we lower income tax and raise tariffs to keep federal deficits in check, we’re shifting from an income tax system to a consumption-based tax system. That’s a big change! Would this consumption-based tax system eventually slow down spending and hurt our economy? It would totally change how we do business and invest.
It will be interesting to see how things play out in DC over the next few months. However, I haven't seen or heard of any serious talk about lowering income tax rates further (and obviously not eliminating it). I don't know if tariffs are to help with current deficits or if Trump honestly wants to use them for other purposes (i.e., bargaining chips).
But as I mentioned above, I just don't understand how tariffs work with nations like Canada and Mexico - i.e., those without large trade imbalances. I get it with China.
If tariffs are used to reduce deficits, it’s like poor people are footing the bill for the government’s overspending.
I am supportive of most of Trump's economic policies - just not tariffs, especially with countries other than China. These don't make sense to me.
Which to me means it’s likely posturing to get border concessions he can chalk up as a win for his base. Hopefully Bessent has a strong voice
This makes sense to me and could be a good move for the long-run. Bessent is a strong, reasonable voice. I have to imagine that Trump selected him for a reason.
Tariffs on Mexico are often intended as tariffs on China.
China has been industrializing Mexico with intention of flooding US markets with good made in China.
China also saw these moves as ways to avoid US tariffs.
Some major Chinese fabs under construction have already stopped
DC drives US manufactures over a cliff and CCP benefits
An industrial Chinatown near the US southern border readies its options should Trump tariffs come
"The huge industrial park sprawls across the rural landscape with row upon row of warehouse-sized manufacturing units. But this development is thousands of miles from Beijing or Shanghai — and just a few hours’ drive from the Texas border, in northern Mexico.
Much of the growth owes to the phenomenon of “nearshoring” — Chinese companies moving production to Mexico to have tariff-free access to the US market under the USMCA trade deal.
"With street signs in both Chinese and Spanish and the flag of the People’s Republic flying high alongside that of Mexico, this is one of many “industrial Chinatowns” that have been created in recent years around Monterrey, turning farmland to factories and boosting the local and national economies.
