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Jul. 10th, 2018
Raising taxes on businesses
Jul. 10th, 2018 05:17 pmhttps://www.bbc.com/news/business-44788817
The first two rounds of tariffs affected mostly B2B imports; therefore, related expenses can be covered from the funds saved through the reduction of corporate tax rates. If additional $200B Chinese imports are going to be taxed at 10%, businesses would have pass at least some of it onto consumers. At the same time, we are seeing oil prices creeping up as well. Within a hot economy, a spike in inflation would be a realistic runaway scenario.
The US has ramped up its trade war with China, listing $200bn (£150bn) worth of additional products it plans to place tariffs on as soon as September.
The first two rounds of tariffs affected mostly B2B imports; therefore, related expenses can be covered from the funds saved through the reduction of corporate tax rates. If additional $200B Chinese imports are going to be taxed at 10%, businesses would have pass at least some of it onto consumers. At the same time, we are seeing oil prices creeping up as well. Within a hot economy, a spike in inflation would be a realistic runaway scenario.