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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (9666)	9/26/2006 5:01:48 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 217822

Whether the USA collects their taxes at the border on Made in China, or inside the border from the wages of those working at Wal-Mart, doesn't make much difference. I think taxes are most logically raised at borders, as the purpose of governments is to define borders, so the cost of doing the defining might as well be paid at the point of definition, where they are busy inspecting goods anyway. I'd start with collecting taxes on oil imports and countervailing tax cuts inside the USA. Oil is in huge, easily measured quantity, spread across the economy. But the USA politicians' rationale is dopey. Whining about the price of the yuan is absurd. If they don't like it, they can bet against it. I'm sure plenty of currency dealers are positioning themselves for future moves on the yuan, which I expect to be in the opposite direction of that commonly believed. There isn't any good basis as far as I can see to think that the yuan is too low. What is too low is pay in China, and those rates are sure to be rising as production continues to grow, and competition for employees tightens and causes pay increases. Mqurice

To: TobagoJack who wrote (9666)	9/26/2006 7:37:51 AM
From: KyrosL	Read Replies (2) \| Respond to of 217822

Given that most manufactured consumer goods in the US are made in China, this duty is equivalent to a sales tax on manufactured goods. Such taxes already exist in the US at lower levels at the State level (typically 5%), and in Europe as VAT at around 18%, as well as in Japan. Although I believe the bill is stupid, in a way I like it because it may pave the way for a hefty Federal sales tax, that excludes food and medicines (which are mostly produced in the US); this is the simplest way to solve the looming fiscal problems caused by the boomer retirement.