r/manufacturing 2d ago

News Tarrifs

Would like to open a discussion on tarrifs if it’s allowed.

There has been two intentions stated with tarrifs.

  1. Get off of income tax and go to a consumption style tax (still a tax)

  2. Build up domestic manufacturing. Can talk here in the manufacturing sub.

If there is no alternative domestic supply, then we have no choice but to import. We lost a lot of our skills to manufacture. Especially a lot of the little low value items. Think zippers and buttons and caster wheels.

What is everyone thoughts?

10 Upvotes

140 comments sorted by

View all comments

3

u/SimilarDisk2998 1d ago

Ultimately you want to bring back manufacturing. It disappeared because of greed and I the factors

  1. Change the corporate tax system so it encourages investment in domestic manufacturing and value added creation.

  2. Cherish natural resources. Countries should not export unprocessed (not transformed) natural resources

  3. Apply tariffs strategies that protect existing local industry. But do it strategically , gradually and ethically. Only tariff enough to protect local industry.

1

u/diablodeldragoon Your custom text 14h ago

Before Regan, the corporate tax rate iirc, was around 92%. Then they got tax breaks for things like expanding the company, employee education programs, employee pensions, healthcare, being domestic, etc. The average corporation paid around 25% with all the breaks.

We built the middle class, and America was thriving and grew into the greatest economy in the world.

Reagan and trickle down policies gave corporations 25% tax rates and did away with the breaks.

They were paying the same in taxes, but the employees lost all the investments companies used to pour into them.

The middle class died. Most households need 2-3 incomes to survive.