Elijah Geniesse

Instructor Aaron Kashtan

UWRT 1101
November 11, 2016

My argument covers whether the US should impose higher taxes on imports in an

attempt to increase our gross domestic income. The United States has a very high
import rate which means that the majority of consumer products come from other
countries. Which helps businesses find products for low prices though it hurts
manufacturers that live within the United States. There are tax impositions on items
that are imported but they are not heavy enough to deter consumers from purchasing
them. If there is an increase in taxes on imported goods then people will be more
willing to buy domestic products which will improve our countries Gross Domestic
Income.

The United States imposes many regulations to deal with imports. These can
prevent foreign business from selling products to consumers in the united states.Taxes
also fluctuate per product. Some goods are taxed higher than others simply because of
their rate of demand. The process for generating tariffs is lengthy and requires experts
who have much knowledge about products, markets, and manufacturing businesses.
These experts generate formulas and guidelines to determine tax rates for all imported
products. Final tariffs are imposed by The US Border and Customs Protection, upon
entry into the US.

The counter-argument to my topic is that an increase in import taxes will increase

costs of most goods to all consumers. Due to laws and regulations, domestic
manufacturing has become very expensive. This requires businesses to manufacture in
foreign countries and import their products here in order to maintain low prices.
While higher taxes will improve domestic business it will hurt businesses who are
trying to stay competitive. Consumers will purchase less, potentially driving foreign
investors away. This will then decrease competition and US product prices will rise,
costing consumers even more money.

During the presidential debate this topic was covered widely. President-Elect,
Donald Trump, even covers this topic in the attached interview. Trump speaks about
his views on foreign relations with China and Mexico specifically. These are our two
biggest trade countries. Both countries manufacture products at much lower prices
then us, therefore the majority of consumer products in the US are imported from
these countries along with many others.

Media products are imported and exported just as manufactured products are.
There are many markets around the world that benefit from trading media goods. The
United States is one of the top nations in exporting Entertainment products. This
strongly benefits our countries economic well being. According to the Bureau of
Economic Analysis, in 2014 the United States exported $710,565 million while we
only imported $477,428 million. The only areas where imports remain higher than
exports are books and sound recordings and computer services.

In conclusion, tariffs are imposed to regulate the amount of imports and exports
between the countries. The united States is in a large deficit because we import much
more than we export. This means a large part of American money is being given to
foreign companies and markets. While this is typically less expensive, it will hurt our
economy in the long run. In order to preserve some of the American money our
government imposes taxes on imported products. These tariffs increase the cost of
products that are manufactured by foreign businesses. This increase of costs will
cause an increase in purchases of domestic products. The money will then go to
businesses within the United States, in turn helping improve our financial stability and
gross domestic income. Therefore, increases in taxes on imported products will prove
beneficial to the US market as a whole.

Sources:
http://www.chinaimportal.com/blog/customs-taxes-importing-china-ultimateguide/
https://www.dutycalculator.com/country-guides/Import-duty-taxes-whenimporting-into-the-United-States/
https://help.cbp.gov/app/answers/detail/a_id/810/~/other-taxes-or-feesrequired-to-import-goods-into-the-u.s.,-other-than-duty
https://www.cbp.gov/trade/basic-import-export/internet-purchases
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/tax/in-tax-mediaand-entertainment-noexp.pdf
http://trade.gov/topmarkets/pdf/Media_and_Entertainment_Top_Markets_Report.
pdf

https://www.thebalance.com/tariff-pros-cons-and-examples-3305967