What is an "American" company? Should Trump assess a tariff upon General Motors?
Today’s #Point2Ponder
Many in America are angry because Trump wants to increase and/or establish tariffs (import taxes) on the importation of foreign goods. They are particularly upset when “American” companies manufacturing goods in foreign countries are assessed these tariffs. But what is an “American” company? What is a “tariff?” Let’s answer these questions.
Constitutionally and historically speaking, Foreign Tariffs are how our founders intended for our central government to be funded for the most part.
Only a small portion of funding for the central government was to come from the American people through consumption taxes upon certain goods.
Our founders anticipated that America would become the commerce center of the world because it was so very resource rich. George Washington and Thomas Jefferson shared the philosophy that America should have neither allies nor emenies; we just simply engage in commerce equally and leave the other parts of the world to bicker with themselves.
There is actually a good bit of noise errupting over these tariffs being assessed upon General Motors for the vehicles manufactured in Mexico.
Those opposed to these tariffs (import taxes) are claiming that Trump is “penalizing” these companies by placing the tariffs upon their goods.
Consider the following Points to Ponder…
1. What makes a company “American?” How can General Motors be considered an “American” company if the goods they produce are created and imported from a foreign country? When Toyota manufacturers vehicles in America, using American workers and American goods, isn’t Toyota more American than General Motors?
2. If a tariff (import tax) is a “punishment” against a corporation then wouldn’t income tax be considered a punishment against the people? Why is income tax considered “fair” and tariffs considered unfair punishments? Why shouldn’t these corporations be expected to pay their fair share for engaging in the American economy?
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