All taxes are paid by people; "things" cannot pay. Thus, when a - TopicsExpress



          

All taxes are paid by people; "things" cannot pay. Thus, when a government puts a tariff on a Chinese good, it is really taxing its own citizens. They now have to spend more money to get the good from China or buy the next best product from some other supplier, domestic or foreign. Ultimately, it is the individual purchasers of an imported good who pay the tax in the form of a loss in their purchasing power. This loss of purchasing power prevents them from buying other goods and services that would have required additional labor to produce. Thus, a tariff on imports also has a negative effect on domestic employment. Manuel Ayau
Posted on: Sat, 17 Aug 2013 04:18:25 +0000

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