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Thread: Paying for the border wall

  1. #1
    Senior Member breamfisher's Avatar
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    Paying for the border wall

    As Steven pointed out in another thread:

    Quote Originally Posted by Steven View Post
    Corporations don't pay taxes. Employees, shareholders and customers pay taxes.
    I'd add to that.. countries, too.

    So my question is, if Pres. Trump is going to get the border wall built and get Mexico to pay for it, how is the payment going to stay in Mexico? If the money is collected in the form of a tariff, what's to keep a Mexican corporation from incorporating that cost into goods sold here?

    If we somehow get the Mexican government to pay for it, they'll probably tax their own manufacturers who'll just pass that tax on to us.

    I'm (legitimately) just trying to figure out how Mexico exclusively will be made to pay for the wall....

  2. #2
    Super Moderator George K's Avatar
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    Trump said it so it must be true. Never mind the boring details.
    Keep your stinkin' government hands off my Medicare.

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    It all depends. I'd think U.S. taxes on Mexican products would most likely hurt the Mexican people.

  4. #4
    Senior Member breamfisher's Avatar
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    Quote Originally Posted by Steven View Post
    It all depends. I'd think U.S. taxes on Mexican products would most likely hurt the Mexican people.
    Explain, please? I have an idea of what you're talking about, but want some clarity.

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    Well, let's say we put a tariff on Mexican goods to try and pay for it (I said try for a reason).

    A tariff gets added to the price of a good. Assuming a competitive market, the Mexican company would have to lower the price it receives. It will either: a) decrease its own production, potentially laying off employees; b) lower employee compensations; c) accept a decrease in profitability; d) combination of above.

    Of course, if production declines, then we may not get the revenue we expected.

    If there's just a tax on Mexican corporations, they'll attempt to pass it on to American consumers if competition allows. If not, it will again fall on the Mexican worker or capital.

    Edit to add: Of course, there are secondary and tertiary effects. If Mexican wages fall, then less demand for imports which in turn can hurt American workers.

  6. #6
    Senior Member breamfisher's Avatar
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    Okay, that's what I thought.

    I've also heard folks suggest we put a surcharge on money transfers from the US to Mexico. I'm not sure if that's legal, or not.

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    Quote Originally Posted by Steven View Post

    Edit to add: Of course, there are secondary and tertiary effects. If Mexican wages fall, then less demand for imports which in turn can hurt American workers.
    I disagree with that statement. If the wages fall, more stuff will be stolen up here and taken down there. So the replacement of said product will help American workers.

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    Quote Originally Posted by CO Native View Post
    I disagree with that statement. If the wages fall, more stuff will be stolen up here and taken down there. So the replacement of said product will help American workers.
    Steven D. Levitt is smiling right now.

  9. #9
    Super Moderator George K's Avatar
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    Quote Originally Posted by CO Native View Post
    I disagree with that statement. If the wages fall, more stuff will be stolen up here and taken down there. So the replacement of said product will help American workers.
    Not if what's stolen are cars made in Mexico.
    Keep your stinkin' government hands off my Medicare.

  10. #10
    Super Moderator Goldenladle's Avatar
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    Quote Originally Posted by George K View Post
    Not if what's stolen are cars made in Mexico.

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