How The Tax Bill Affects Imports/Exports
The tax bill has directed at helping companies and corporations based in America. Aimed at bringing companies and corporations back to America from overseas.
Who is Positively affected by the Tax Bill
This bill is specifically aimed at people in Florida who are recovering from Irma as well as combatting the citrus greening disease.
Brewers and distillers
Brewers, Vineries, Distillers and all things alcohol are receiving a huge discount on tax breaks.
Engineers and Architects
These people receive a 20% tax deduction for their services.
People who are landscapers and uber drivers and the like receive a 20% tax deduction for their expenses every year.
How these Positives Damage Trade
All of these trades seem like they don’t directly pertain to international trade and are only a segment of the easily trackable changes established. However, one of the common numbers you’ll see on that list is 20%.
In America, the tax rate for corporations used to be 35% because they are often designed to grow large and fast, and it helps put back toward the community. However, other countries began offering lower rates so that corporations would claim their headquarters were in foreign countries where they are typically 25%.
Across the board, corporate tax rates are now 20%.
This affects international trade because places that have notoriously low tax rates used for production and manufacturing. Places like Apple will have their parts created in China and then assembled in America. But with these tax cuts, Apple could be convinced to make the entire endeavor in America.
This is a large disruption in the import/export business because this can highly disrupt the flow of business to and from China and other tech-centered countries that we are presently doing business with.
Is it better to bring in more corporate tax money at the expense of valuable trade routes?