re: Mark Levin on Tariffs

quote:

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Ole Beefy is making the argument that tax savings will be used to cover tariff losses

Now, that's not going to happen. But let's say it did happen, does he think that not being able to use the tax savings to expand capacity or efficiency is a good thing?

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Use your head.

The tax savings are significantly more than any company's outlay to procure tariff'd goods.

If a company has a gross income of $1 billion, and their effective tax rate just went from 22% ($220 million) to 9% ($90 million), that's a difference of $130 million.

If their inventory needs from tariff'd countries is only $300 million (30% of their gross), and that $300 million now costs them $375 million (25% increase), there's still a difference in their net of +$55 million.

Pretty sure that's still a significant amount to use towards expansion, hiring more employees, improving efficiencies, or damn near anything.


You people are acting like these are dollar for dollar offsets and they're not. The tax savings and lower overhead costs are going to be significantly bigger than anything created by these tariffs, and they will be actualized as direct increases to their bottomline margins when compared to previous years... at least at the beginning.


You clowns crow about "economics, bitch", but you're being retards in applying that logic here.

If you had liabilities of $220 million last year, and this year you only have liabilities of $90 million, then this is directly applied to profit margins.

You're an imbecile if you suggest they're not.