New home builders will pay for that new Canadian lumber tariff

[Jacque67 7,328]

Who's really going to end up paying for the new Trump tax on Canadian lumber? New home buyers in the U.S.

The Trump administration announced Monday plans to impose duties of up to 24% on most Canadian lumber, charging that lumber companies there are subsidized by the government. Canadian lumber makes up about 30% of the U.S. market. 

 

The tax is expected to hike the price of lumber used in home building by an average of 6%, according to the National Association of Home Builders, the trade group for the U.S. industry. 

 

"For builders, it'll increase the cost of construction by about $3,000 on the average home, which unfortunately will be passed on to consumers," said Jerry Howard, CEO of the group.

[Jacque67 7,328]

http://money.cnn.com/2017/04/25/news/economy/canadian-lumber-tax/

 

Nickelback and South Park- it's all your fault!!!!

[Amica Nostra 4,803]

 

[Amica Nostra 4,803]

no reason to post the lumberjack song..just like the oppo to slip in some MP

I just now realized the Lumberjack love interest is Connie Booth,  John Cleese's EX

[Amica Nostra 4,803]

[Dashinka 25,894]

Isn't this in the same vein as corporate taxes (i.e. corporations don't pay taxes, their customers do)? 

[Transborderwife 4,666]

7 hours ago, ccneat said:

Brazil?!?!

 

ohhhhCanada...

[CaliCat 3,957]

9 hours ago, Jacque67 said:

Who's really going to end up paying for the new Trump tax on Canadian lumber? New home buyers in the U.S.

The Trump administration announced Monday plans to impose duties of up to 24% on most Canadian lumber, charging that lumber companies there are subsidized by the government. Canadian lumber makes up about 30% of the U.S. market. 

 

The tax is expected to hike the price of lumber used in home building by an average of 6%, according to the National Association of Home Builders, the trade group for the U.S. industry. 

 

"For builders, it'll increase the cost of construction by about $3,000 on the average home, which unfortunately will be passed on to consumers," said Jerry Howard, CEO of the group.

 

Of all the countries in the world, the so-called president chose to pick a fight over lumber with the one country that has stood by our side through thick and thin, and that is our biggest ally.

 

The winning is sickening.

[Amica Nostra 4,803]

1 hour ago, Transborderwife said:

Brazil?!?!

 

ohhhhCanada...

I was trying to figure the map out as well...WA and SC are probably China due to Boeing, but what does Nevada export to Switzerland?

[Amica Nostra 4,803]

2 hours ago, Bill & Katya said:

Isn't this in the same vein as corporate taxes (i.e. corporations don't pay taxes, their customers do)? 

No this is different. That corporation may have funneled the profit through of shore accounts, have offsetting carry forward losses, have depreciation deductions that are accelerated, have targeted tax credits or simply reinvest.  In this case Home Depot is just going to mark up 2x4s 20%

[Teddy B 17,252]

6 minutes ago, ccneat said:

I was trying to figure the map out as well...WA and SC are probably China due to Boeing, but what does Nevada export to Switzerland?

There's gold in them thar hills!

 

 

Quote

 

Why Switzerland is Nevada’s biggest foreign export market

The Washington Post published a map Thursday of the top foreign export markets for every US state. For most states, 35 in all, the top export market is Canada. For six states, it’s China. And for five states, all in the country’s southwest, it’s Mexico. But one state stands out on the map.

The top foreign export partner for Nevada, known to the world for Las Vegas, is Switzerland. Nevada exports $2.7 billion worth of goods, or 31% of the value of the state’s total exports abroad, to the wealthy, landlocked European nation, according to the US Census Bureau.

The major export: gold. Last year, Nevada exported $3.9 billion worth of gold in total. As seen in the chart below, if the state were a country, it would rank among the top 10 gold exporters globally. Switzerland, where the Swiss Franc is still backed by gold reserves, is the world’s gold hub, refining two-thirds of the world’s gold, by some estimates.

https://qz.com/268164/why-switzerland-is-nevadas-biggest-foreign-trading-partner/

 

 

[Amica Nostra 4,803]

17 minutes ago, CaliCat said:

 

Of all the countries in the world, the so-called president chose to pick a fight over lumber with the one country that has stood by our side through thick and thin, and that is our biggest ally.

 

The winning is sickening.

We are friends with Cghhinah now and cannot afford to be seen with Canada or we will be kicked out of the cool kids club.  Sooooorry.

[Amica Nostra 4,803]

3 minutes ago, Teddy B said:

There's gold in them thar hills!

 

 

 

And Nevada buys Toblerone bars?

[Dashinka 25,894]

6 minutes ago, ccneat said:

No this is different. That corporation may have funneled the profit through of shore accounts, have offsetting carry forward losses, have depreciation deductions that are accelerated, have targeted tax credits or simply reinvest.  In this case Home Depot is just going to mark up 2x4s 20%

I don't think it is very different from the OPs premise that the home buyers will be paying the higher price.  You are absolutely correct that corporations will do as much as they can to reduce their corporate tax bill, and quite honestly they should, but whatever the number that ends up being tax is also paid for by the consumers.  So if the government follows Bernie Sanders' idea regarding raising taxes on corporation, we the consumers will pay for it in the end, so it is just a hidden tax on the masses. 

[Teddy B 17,252]

3 minutes ago, ccneat said:

And Nevada buys Toblerone bars?

I could eat every Toblerone bar exported to the states, that's some good chocolate!

 

ETA: I didn't know that Toblerone has been owned by a US company since 1990.

 

 

Quote

 

Toblerone

Toblerone (/ˈtoʊbləroʊn/; German: [tobləˈroːnə]) is a Swiss chocolate bar brand^[1] owned by US confectionery company Mondelēz International, Inc., formerly Kraft Foods, which acquired the product from former owner Jacobs Suchard in 1990. It is produced in Bern^[2] and in early 2000 was being produced in the United States by Ferrara Pan candy company in Bellwood, Illinois.^{[citation needed]} Toblerone is well known for its distinctive triangular prism shape.

https://en.wikipedia.org/wiki/Toblerone

 

 

 

Edited April 26, 2017 by Teddy B