In the early 60s, France and West Germany imposed a tariff on chickens imported from the US.
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In response, the US imposed a tax on some goods, including light trucks. This had some weird consequences.
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Today, Ford sells a vehicle called the Transit Connect. It's a utility van, used by lots of plumbers, painters... service type work.
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This vehicle is built overseas and shipped here. Ordinarily, it would be subject to the chicken tax.
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But it's built with vestigal passenger seats, designed to the minimum allowable standards. This makes it a passenger vehicle for customs.
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After the vehicles arrive, those seats are removes and scrapped, and the vehicle is reconfigured to its original intent.
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It's cheaper to build and throw outna flimsy-ass rear bench than it is to pay the tax. Result? Stupid loophole, tons of waste.
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Go ahead and try to impose such a penalty. Let's see what it does to our trade capabilities. Let's do that instead of job training efforts.
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Economic policy needs to be better than catering to a macho myth of American exceptionalism. "Wanna leave? Well FUCK YOU
" isn't policy. - 2 more replies
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So is Carrier going to be hit with this 35% tax? Yes, I know it's a rhetorical question...
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The next question is, how do you apply this tax to the former US companies, but not other companies?
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I'm not a constitutional lawyer, but this may even run afoul of the Equal Protection clause.
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I'm amazed at the ramifications of the bad deal Trump negotiated with Carrier. And at how bad a deal it is.
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Trump makes the best deals? My ass!
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he always makes the best deals. For him. With other people's money.
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