Comment on Who gets all the tariff money about to be collected from US citizens buying products from Canada?
skankhunt42@lemmy.ca 1 day agoSo, on import of whatever, the bill is still $xxx but there’s an extra tax line for 25% that adds on top and goes to the government. Now they build a car with that and the car is now ~25% more expensive. The customer pays the +25% for the car.
Government doesn’t need to collect as much tax from people who make over $1,000,000 because they got 25% from that import and so its a tax cut.
Is my smooth brain correct?
adarza@lemmy.ca 15 hours ago
most retailers won’t be happy with the same net per unit when fewer units will sell due to the higher prices, so they’ll be adding more than just that 25% of ‘cost’ to the final retail price.
the basic idea of the tariffs for lord diaper is to pressure those countries into doing what he wants. the revenue stream is secondary to that goal, but is a significant shift of tax burden onto the lower and middle classes; while the wealthy get tax cuts ‘funded’ by those tariffs that disproportionately affect those least able to afford the higher prices.