Monday, May 21, 2012

Byzantine Trade Law Insanity

There is a law in America where importing toys resembling humans are  taxed higher than those that do not; Marvel successfully argued in court that  because their X- men action figures are mutants, they should be exempt from the  tax.

Slate.com - How Trade Policy Cost The X-Men Their Humanity
"It's remarkable, incidentally, the extent to which the politics of "trade deals" have gotten away from the fundamental issues of free trade as seen in an economics textbook. What we have here is a federal 12% sales tax on dolls, but only if the dolls are made in foreign countries, and a different -- arbitrarily lower -- 6.8% federal sales tax on toys, but again only if the toys are made in foreign countries."