Sometimes we see Republicans intentionally working against the new President, but sometimes they work against him and don’t even know it. I’m not sure which is more amusing to watch.
And here’s how they’ll do it. Republicans are planning a new tax called the adjustability tax, and over the next ten years it will cost American consumers over a trillion dollars. But remember, we are talking about taxes here. Washington politicians are notorious for underestimating what it will actually cost those who are paying for it. It’s a marketing thing, right?
What will be taxed? Pretty much everything we use on a daily basis, as well as gasoline, which is expected to see an increase of about 30 cents per gallon as a result. This may not seem like a huge tax hit to the wealthy, but low-income and struggling middle class Americans will feel the hit the hardest.
There has been very little discussion about this new tax and its impact on Americans. The politicians aren’t really even openly debating it, but they’re ready to enact. But kind of like an adolescent without a fully developed frontal lobe of the brain, they are implementing the tax without foresight on how it will impact their own jobs. Sound oh so republican, doesn’t it?
This is how the new tax burden will ultimately end up in your lap:
If a store imports a good, like a television, they will purchase it wholesale from another country for, let’s say $100. They will turn around, mark it up to $200 and sell it to you. That would leave them with $100 profit. Up until now, the store owner could deduct the cost of goods on taxes and just pay taxes on the profit- $100. Under the new Republican scheme, however, the store owner will have to pay taxes on the entire sale price of the item-$200. And do we think that the store owner will just absorb that? No. They will pass on the tax to you, the consumer.
This goes for oil refiners who import crude oil for production of gasoline. This spells higher prices for you at the gas pump.
Think about how this will impact the auto industry. The cost to import parts for manufacturing will explode-and you know what that means for us. Worse yet, what will that mean for the tens of thousands Americans dependent on those jobs?
On the other hand, there is another feature of this tax plan that really benefits corporations. (Are we surprised?)
Exporters will not be taxes on their export revenues. So if Corporation ABC sells something to Saudi Arabia, for 10 million, and it only cost them 6 million to produce it, the Corporation will have a 4 million dollar profit that will not be taxed.
No wonder big corporations are drooling and foaming at the mouth to see this new tax bill become effective.
Hold on to your wallet.