What’s the Problem?
Right now, there’s a law (U.S. Legislative Bill Section 321- Trade Enforcement Act of 2015) that says if something you import to the U.S. costs less than $800, the company that sells it doesn’t have to pay any taxes or fees. This is great for big foreign companies like Shein, which can sell clothes and other stuff at cheaper prices than American businesses. But it’s bad for U.S. companies, especially small businesses because they can’t compete with these lower prices.
Why Is This a Big Deal?
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Unfair Competition: U.S. companies have to pay taxes on their products, but foreign companies don’t if the item is under $800. This makes it much harder for American businesses to sell things at a competitive price.
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Hurts U.S. Jobs: If more people buy cheap stuff from other countries, American businesses lose money, and this can lead to people losing their jobs.
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Less Money for the U.S.: Since the U.S. isn’t charging taxes on these foreign goods under $800, the government is missing out on money that could help pay for things like roads, schools, or healthcare.
How Can We Fix This? -
Lower the Limit: Change the law so that the tax-free limit is no longer $800. Lowering it to something like $200 would make it fairer for U.S. companies because foreign businesses would also have to pay taxes on their products.
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Create a Fair System: Set up different levels of taxes depending on how much the product costs. For example, small items like under $100 could still be tax-free, but more expensive ones would be taxed.
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Better Enforcement: Make sure that foreign companies aren’t using loopholes to avoid paying taxes. Stronger checks can help stop this from happening.
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Help U.S. Businesses: Give American companies a boost, like tax breaks or other support, so they can stay competitive while the rules are being fixed.
The current rule that allows imports under $800 to avoid taxes is hurting U.S. companies and costing the country money. By lowering this limit and making it fair for everyone, we can help protect American businesses, save jobs, and keep our economy strong!