I consider a different issue, in that in cases where goods were manufactured in the United States, all stages of procurement, labor, and sale are taxed by the government. Those costs funded by the taxes still need to be paid even if the money is expatriated.
The issue isn't that 'trade is or isn't balanced' it's that when enough of it mov…
I consider a different issue, in that in cases where goods were manufactured in the United States, all stages of procurement, labor, and sale are taxed by the government. Those costs funded by the taxes still need to be paid even if the money is expatriated.
The issue isn't that 'trade is or isn't balanced' it's that when enough of it moves overseas in a commercial-tax-funded country without capturing that tax value by some other means puts us in the hole faster.
I understand the point that the cost of goods doesn't effect our productive competitiveness (except in an indirect way) but it definitely effects our pricing competitiveness.
The government taxes production of the goods we export, the wheat, just as it would tax production of the cars that the imported cars the wheat buys replace.
I consider a different issue, in that in cases where goods were manufactured in the United States, all stages of procurement, labor, and sale are taxed by the government. Those costs funded by the taxes still need to be paid even if the money is expatriated.
The issue isn't that 'trade is or isn't balanced' it's that when enough of it moves overseas in a commercial-tax-funded country without capturing that tax value by some other means puts us in the hole faster.
I understand the point that the cost of goods doesn't effect our productive competitiveness (except in an indirect way) but it definitely effects our pricing competitiveness.
The government taxes production of the goods we export, the wheat, just as it would tax production of the cars that the imported cars the wheat buys replace.