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Bob Hancke's avatar

Services are mainly non-traded, and thus fall outside the remit of tariffs. Those that are traded are mainly services that a country would like to import (film, music, high- end finance, consulting, architecture, law, …), and that the US exports en masse.

Seattle Ecomodernist Society's avatar

services are protected through regulation in other countries and this restricts American exports and slows foreign growth, the imperative is to remove those trade barriers. the middle class malaise better described as industrial obsolescence thrusting the majority of workers into the precariat of simple services needs neither higher taxes nor larger government to remedy, in fact that prescription flows from the mentality of the problem which is the keynesian large state from 1950. the advanced countries face the transition from industrialization to automation and to make it and resolve obsolescence, increased state capacity is needed to develop infrastructure and commercial policy that unburden capital, lower the cost of externalities that prohibit automation outside the software realms, so that capital can iteratively test and discover latent comparative advantage in non software domains, and apply software where it will bring global advantage. as china shows, advance comes not from the keynesian state getting larger and supplanting capital, it comes from state capacity equipping capital to allocate. get smarter not fatter. a balance is needed between finance and development of software related domains and in an environment of lower cost/friction externalities, continuously probing latent advantage and making automate/exit decisions. the latter is the transition from industrialization to automation. there is the moral side too, cultivating higher education practitioners able to direct software, which relies on families and restored schools socializing children with stable emotion and temperament to learn more. the demand and supply of modern labor.

Chartertopia's avatar

I don't know much about how businesses report their finances and operations to the government, for taxes, environmental, equal protection discrimination, and other bureaucratic nosiness. How much of services could be detected and taxed that way? There are recent reports that Waymo(?) autonomous cars get some assistance from operators in the Philippines. Indian and other foreign call centers are common. I have read articles on foreign work centers scanning documents, grading college homework, and so on.

At some point, all these foreign workers get paid, from American bank accounts. I'm sure the feds know all about those payments. What prevents taxing them?

At the same time, I have no idea what fraction these foreign workers are of all overseas services, or what fraction of all services are foreign-based.