You libtards thought you had him! Hahaha

Actually, for a 25% tax, their price has to increase by 33% to maintain the same revenue.

This "xenocles" has no idea what they're talking about.

Trump said it, you believe it, that settles it. Triste.

You think I'm a liberal? Hilarious!

xeno. This loser plays these games with ANYBODY who cuts down his memes with facts and stats.

He especially has a chubby for me.

*takes deep breath..savors the power and influence I hold over "Lil Renny Ren"*

Wrong.

It's a border tax of their imported goods.

http://www.businessinsider.com/sean-spicer-trump-considering-20-tax-on-mexican-imports-2017-1

What, you think a company is just going to keep their price the same and suffer a 20% reduction in revenue?

You have no idea how this works. Mexico would have to pay US to sell their goods here. Raising their prices would result in them paying a HIGHER tax. People would stop buying their products which would result in them losing even more money.

http://www.cnn.com/2017/01/26/politics/donald-trump-mexico-import-tax-border-wall/index.html

Let's walk through this bit by bit:
Firm X in a foreign country sells its products here. They charge the retailer $1.
Retailer Y sells you the product. They mark it up to, let's say, $2, which covers their costs and allows for some profit.
Congress passes an import tax of 25%. Now Firm X sells the product for $1 but pays the government $0.25 for the privilege. Their revenue has declined by 25%.
Firm X now has a choice to do some combination of these things:
1. Charge Retailer Y more for the product (to still see $1 of revenue they actually need to charge $1.33, not $1.25, since any price increase is also subject to the tax).
2. Suffer a loss of revenue. They may be able to eat the entire tax out of their profit margin, I don't have the data in this hypothetical. They may have to eat some of it to remain competitive.
3. Stop selling their products here. We aren't the only market in the world. If the quality is competitive- and after all, we were buying it - perhaps they can sell somewhere else for the same profit or more.
It is obvious that option one passes the actual payment of the tax on to either Retailer Y or their customers and that option three results in no tax being paid by anyone. Thus any tax revenue actually coming from the foreign country depends on Firm X's ability and willingness to lose a significant amount of revenue from each sale. It also depends on the rate being low enough to preserve foreign interest in selling here at all (that is, don't kill the golden goose).
In this scenario, if comparable domestic goods wholesale for more than $1.33, X can probably get away with passing the entire cost on to us (the evidence is overwhelming that the market considers price to be the most important variable in a purchasing decision).

Yeah, they're more than welcome to keep raising their prices. The result is that they'll pay an even higher tax. What are they going to do, keep raising their prices? Nobody will pay for their product.

They're free to sell their product elsewhere. Guess who's closest? AMERICA. Hence, choosing to sell their products to other countries that they would've sold to us results in higher shipping costs for them.

The bottom line is, if they refuse to pay for the wall and Trump hits them with this tax, they're going to have to eat the costs. Trump has the by the balls. There's a reason he's a billionaire.

We'll see.

Tomato / tomahto

It won't matter of they raise the price, with the reduction in taxes to 15%.
So there :p

You know that means the money still comes from us, right?

I guess if you buy shit beer and eat avocado.
I see what you are getting at.

You bore me.

So i'll take that as not wanting to talk...

Porkins. You already know that mature debate and adult discussion are things renny is incapable of. Come on, man...