Import Certificates Vs. Tariffs

Discussion in 'Economy' started by Supposn, Nov 28, 2016.

  1. Supposn
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    Supposn VIP Member

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    Import Certificates Vs. Tariffs:

    I’m a proponent of USA could adopt an Import Tariff policy as described in the Wikipedia article entitled “Import Certificates”.
    Refer to:
    https://en.wikipedia.org/wiki/Import_certificates

    The subject of tariffs often arises within discussions of Import Certificates.

    Comparisons between tariffs and import certificate policies:

    Both tariffs and import certificate proposals would require importers of goods surrender something’s of value to the U.S. government before their goods are enabled to enter the USA. Tariffs can as the Import Certificate policy is to be drafted in a manner to be no greater than self-funding; (i.e. providing government with no net revenue).
    Within both trade policies the values of what importers are surrendering (and thus the additional expense to the importers) are proportionally related to approximate values of their shipments being brought into the USA and those additional expenses are passed on to the eventual purchasers of imported goods.


    Within an Import Certificate policy an exporter of USA goods is entitled, (i.e. not required) to choose to pay the federal fees that enable them to acquire transferable Import Certificates with face values equal to the assessed values of their USA export shipments. If they do not pay the fee, their shipments are not assessed and no certificates are issued.

    Certificates with face values sufficient to cover the assessed values of goods imported into the USA must be surrendered before import shipments are permitted to enter our nation. Surrendered certificates are cancelled. This policy is an indirect but effective subsidy of USA’s exported goods.


    Regardless of the transferable import certificates price rates within global markets, (i.e. even if the additional costs for importers to bring their shipment into the USA would be only a penny, USA’s annual trade deficits of goods would be entirely or almost entirely eliminated.

    No tariff policy could provide such an assurance with any certainty but any tariff policy that could feasibly attempt it would have to be of the most extremely high tariff rates to be passed on to USA purchasers of imported goods. Such drastically high rates would almost entirely eliminate imported goods from USA’s domestic markets.


    Because the Import Certificate policy is substantially market driven, if within the USA there exists an effective demand for any foreign item (that’s legally importable), that market demand will be satisfied.


    Respectfully. Supposn
     
  2. Grandma
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    Grandma Geezer Chick Supporting Member

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    I think a lot of jobs would come back here if there were a bill passed that would force outsourcing businesses to pay workers in whatever country they're in the highest US state minimum wage, with overtime as applicable.

    That's all that Congress has to do.
     
  3. midcan5
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    midcan5 liberal / progressive

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    Whenever bureaucracy enters the picture people and countries cheat abuse or ignore, never works. Americans can could but will not fix their own nation's weak economic areas as often it is in their interest to cheat abuse or ignore. Wanna fix it. Buy American, buy from American companies who design develop manufacturer in the US of A. Kinda simple.

    One Example of American Workers Growing Despair; We Need OUR Jobs to Stay Here!
    So now that republicans have full control, HOW will they address the following issues?
    What About The Unions?

    [repost] When Japan and China manipulate their monetary system to provide lower prices, then you have problems. In terms of work, I'll link two sites below that give a sense of auto work and how much your car benefits your nation's workers. (pass them on) After housing, automobiles are big sale and profit items. People also forget or miss automation and technology advances. When I started work, technology was mechanical, today it is often automated. Where fifty people once worked to provide a service, now only a few do the same work. Americans need to copy Japan's keiretsu, a system in which they collaborate rather than pretend some imaginary market god is in control. It's kinda funny that Americans buy cars made in German, Korea, and Japanese unions and then castigate their own. Shows you how much corporate propaganda controls the American mind.

    Support America: 2015

    http://www.levelfieldinstitute.org

    Pass it on buy American made in America.
     
  4. Syriusly
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    Syriusly Diamond Member

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    How much extra are you personally willing to pay in order to create jobs for other people?

    This is not a flippant question.

    What you are proposing might well work, and would certainly enrich exporters, and would benefit those directly- and indirectly employed in export industries- but it would cost all Americans more in terms of what we pay for articles. If you are a farmer, an oil worker or a company that exports tractors- you will probably come out ahead. If you are a motel worker in Los Angeles, you will probably end up paying more for most of what you buy.

    In my particular case, I would end up personally paying more, and my company(a net importer) would suffer- perhaps even go out of business. There would be winners and losers.
     
  5. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    “Import Certificates”.

    Bad idea.
     
  6. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    typical liberal wants to tax Americans more to violently force them to buy American made products that would then cost far more than imported products and be of lower quality. And this is just one 1000 soviet interventions the typical liberals wants.
     
  7. Supposn
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    Supposn VIP Member

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    Edward Baiamonte, your post at best is typical extremist hyperbolizing; your writing reveals deliberate ignorance if you haven’t read and considered Wikipedia’s description of an Import Certificate policy or an inability to comprehend what’s written.
    The “violence” or the “forcing” persons to behave contrary to their own wills that you perceive to be integral to proposed Import Certificate policy for USA’s global trade is entirely due to your imagination.


    USA’s adoption of the Import Certificate policy would effectively eliminate USA’s annual trade deficits of goods, and more than otherwise increase our GDP, numbers of jobs and median wage. Rather than being a net source of tax revenue, the policy behaves as an indirect but effective subsidy of prices to foreign purchasers of USA exported goods.

    All the trade policy’s net direct costs are passed on to USA purchasers of imported goods. The substantially market (rather than entirely government) driven trade policy could not halt the importation of any item for which there’s an effective demand among USA consumers of goods.

    Respectfully, Supposn
     
  8. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    All the trade policy’s net direct costs are passed on to USA purchasers of imported goods.

    Yes, reducing our standard of living, brilliant idea!!
     
  9. Supposn
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    Supposn VIP Member

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    ToddsterPatriot, we all benefit from cheaper imported goods but they do not compensate for USA’s chronic annual trade deficits net detriments to our annual gross domestic productions and our numbers of jobs; these in turn are net financially detrimental to USA’s aggregate employees and their dependents.

    USA’s chronic trade deficits of goods are a substantially contributing cause of our median wage’s purchasing power’s malaise; (i.e. contributing cause of our less than otherwise standard of living).

    Respectfully, Supposn
     
  10. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    we all benefit from cheaper imported goods but they do not compensate for USA’s chronic annual trade deficits net detriments to our annual gross domestic productions

    Those deficits come back as investments which are a net plus for our annual gross domestic productions.
     

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