On Tariff vs Tax.

On TARIFF VS TAX. People of a country; they group in different conglomerations, if large enough, they organize to choose one of the groups to apply rules and regulations on their behalf and benefit of all. In order to preserve that group, the rules are built to exist permanently until years pass and the environment forces them to modify and or change it. It is when it is called CULTURE or NORMS. It happens that the environment in which a group of people live changes faster than the environment of other groups; in those groups there exist individuals or few individuals that are creators (scientists). Their creations are applied or not is what makes the group evolve slowly, into a much advanced group within many others. Their invention is shared, copied or just distributed with others in exchanging money or in making, in exchange for different inventions. Those inventions are updated but the owner of the creation tries to keep the right of his/her creation as long as they are alive or pass it to its descendants as written in those rules or laws. People worldwide benefit or try just not to let others enjoy the inventions unless they adhere to rules made in order to use them. Those rules are called contracts, be they local or international. Their governments tax the creator of the invention and use that tax to distribute among the group where the creator belongs to. This here said is mostly typical of a Democracy. But there is a “but” worth to mention here. Among countries (made by well organized groups of people, sometimes there are chosen people that feel and think they are superior to the rest of all of them. Cuz, they had been elected to control in benefact of the group, they (the elected one) imposes his/her feelings or ideas without even consulting with the rest that are represented by chosen groups and are called, for example (in the United States of America), CONGRESS. Not to explain in long thoughts, they might be called leaders, judges, monitors or peoples presidents or even boss of bosses depending on the type of group they direct. Very often they wish and try to permeate themselves as owners of the group and turn into the so call “dictators”. Investors create their own group and are not dictators, the law allows them to direct and control their group as long as they work with the money of the investors. They are not dictators but businesspeople. Their government benefits from the taxes they receive from the groups of their exchange or sale of their products. It is their government who adds taxes to that product even that government did not invest a penny in it. The group or just an individual purchases row material of part of the material already created by other groups of other regions the built or manufactured the device (they invested human labor, row material time and energy to create or bult it, so they had a cost; as they sell them, they charge for that in order to benefit of their creations); the group the buys that, charge a tax to its people and benefit too ( a win-win business). Here is the problem: some leaders of some groups feel they are not making enough money of the product sold to its people and that that product is highly consumed by its group therefore, that leader or leaders decide that they are losers in business exchange with that other group …out of this point of view, the leader thinks their own group has a disparaging benefit (the group that built, remember: built) that product) in comparison with the one that makes the sale to the buyer or purchaser and that his/her group is not benefiting enough on the product purchased cuz if you compare the tax gain against the product’s benefit of the builder’s device of the other foreign group, the money gained by the foreign one might be ten times or more higher than the tax gained by the group that received the product …what? Did the one that received or purchased the product invest any money in the cost: material, labour, expenses such as building’s rent, building maintainer and/or construction, electricity and the likes to create the product sold to the group that receives that product and pays the cost of production of the seller to them? The leader of the buyers, his group, invested a “nada”, nothing in that creation of the product they buy. Here the problem: then the leader of the buyer imposes a proxy tariff that in reality is a tax covered with the name of TARIFF …and the tariff has a higher cost to pay than the money invested to create the thing …this is this: my group that spend no money at all to create that thing, gets most of the benefit of the cost of the thing and the thing itself (physically), the creator gets some miseries of the cost they invested. This is, you are stupid, I am a thief. What “the stupid one does?” Now your people are going to cover your tariff -tax if they want my creation. This turns the country that needs the product into an inferno, and it enters into self-destruction cuz that thing is desperately needed by its group of people. Got it?