Tuesday, June 28, 2011

"America's Flawed Tariff System" and "Tariff as Revenue"

According to the two articles, I think America's Tariff system really has two problems which are affecting adversely American's living stardand and destorying the countries' mutualtrust tariff rules. Especially, it is going to be tougher and tougher for citizens when government increases tariff of some basic materials or resources, such as flour, rice, and steel. Increasing the prices of these materials will bring a chain reaction to other daily necessities and light industry products. All the things will seriously influence the lives of poor people. Furthermore, the U.S. government's tariff revenue is extremely consisted by low-tech consumer goods (average rate of 10.5%) and the rest of consumer goods(0.8%). It is no doubt that the incresed costs must be transferred to customers. The situation will hurt people strongly who have lower income. The less the people earned, the more the people being hurt.
Sincerely, I believe that America's tax system and tariff system are unfair for its blue-collor workers and other developing countries which rely on their exported light industry goods, such as shoes and clothes. In fact, the government imposes higher taxes and tariff on them that result in a bad trade interaction and tough lives. However, the U.S. government should try to figure it out before something worse happened.

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