OK, some may think I’m getting into politics, but that is not my intention.

 

It strikes me that we are starting to get things that look like taxes, swim 
like taxes, and quack like taxes, but are not treated like they’re taxes.  
Tariffs are starting to seem that way.  Another example that bothers me more 
and more as the contribution rate goes up is USF.  What is that other than a 
tax on long distance phone service?  That generates a slush fund for some 
unelected bureaucrats to dispense.  Mostly to big telcos.

 

Normally taxes are passed by Congress, and they take the heat for it at the 
next election.  Normally Congress also decides how to spend the revenue.

 

As long as tariffs are relatively small, you can view them as part of trade 
policy.  Same with USF, if it wasn’t so big, you could overlook that it is 
essentially a tax that nobody voted for, used for corporate welfare.

 

 

From: AF <af-boun...@af.afmug.com> On Behalf Of Lewis Bergman
Sent: Wednesday, May 29, 2019 5:37 PM
To: AnimalFarm Microwave Users Group <af@af.afmug.com>
Subject: Re: [AFMUG] tariffs on servers

 

I don't think there is much thought to how it works in the consumer level other 
than it is supposed to make the tariffed goods more expensive thereby making 
other options more competitive.

In that respect, it is likely working. Changing global supply chain 
relationships doesn't move quickly though. Vietnam for instance has had trouble 
meeting the same standards as China. Seems hard to imagine but after a few 
decades of manufacturing for the US China has gotten pretty good at it.

 

On Wed, May 29, 2019, 5:23 PM Jason McKemie <j.mcke...@veloxinetbroadband.com 
<mailto:j.mcke...@veloxinetbroadband.com> > wrote:

One thing about the tariffs that is especially irritating to me is that if 
tariffs are imposed at, for example 30% on steel, then the domestic supplier 
just raises their prices by 29%.  Is this the way that this is supposed to work?

 

On Wed, May 29, 2019 at 3:18 PM Ken Hohhof <af...@kwisp.com 
<mailto:af...@kwisp.com> > wrote:

I’m in the process of buying a couple Supermicro servers, and I’m told that due 
to tariffs, prices have already gone up around 10% and will be going up another 
15% on or about June 1.

 

Are others running into the same thing?  It sounds like I need to place my 
order now.  That’s not a trivial increase.

 

We’ve also received tariff notifications from tower steel vendors, power supply 
vendors, cable vendors, and we saw Cambium increase prices a few months ago.  
Some of these like the steel and cable you just eat, but potentially everything 
we buy except bandwidth may be going up.  I wonder if bandwidth suppliers will 
figure out a way to jack up prices claiming tariffs!

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