[HN Gopher] Adding unusable RAM for tax reasons
       ___________________________________________________________________
        
       Adding unusable RAM for tax reasons
        
       Author : NieDzejkob
       Score  : 155 points
       Date   : 2022-01-20 17:11 UTC (5 hours ago)
        
 (HTM) web link (www.cpcwiki.eu)
 (TXT) w3m dump (www.cpcwiki.eu)
        
       | cromka wrote:
       | > Without the stiff competition of the smaller, lighter, easier-
       | to-drive, and more fuel efficient import pickups and vans,
       | Detroit automakers were no longer required to keep pace with
       | innovation of foreign brands.
       | 
       | One has to wonder how much this innocent-looking levy contributed
       | to the overall global warming situation, by never having the US
       | automakers to be incentivized to manufacture more efficient
       | commercial fleet, and, as such, inbreeding the culture of buying
       | the overly big pick ups and SUVs with massive engines for private
       | use, too.
        
       | putlake wrote:
       | NPR's Marketplace had a fascinating story about something similar
       | in the apparel business. They design pockets in various types of
       | clothing to reduce tariffs.
       | 
       | https://www.marketplace.org/2019/05/29/theres-a-reason-your-...
       | 
       | Example from the article:
       | 
       | Certain women's garments with "pockets below the waist" get lower
       | duty rates than those without. Because of that, a number of the
       | women's shirts Columbia Sportswear makes are intentionally
       | designed with tiny pockets near the waistline, which lowers the
       | cost of importing them. One of the company's shorthands for
       | "pockets below the waist" is "nurse's pocket."
        
         | FroshKiller wrote:
         | Marketplace is produced by American Public Media, not National
         | Public Radio.
        
       | imposterr wrote:
       | Archive link: https://archive.fo/Qlsx2
        
         | AviationAtom wrote:
         | Thanks, kind neighbor. It appears to be hugged to death
         | already.
        
       | JoeAltmaier wrote:
       | Pistols manufactured in Mexico are imported as a kit of parts,
       | then assembled as "Made in America!"
        
       | SMAAART wrote:
       | Tax is the reason why Converse sneakers have fuzzy bottoms
       | https://www.businessinsider.com/heres-why-converse-sneakers-...
        
       | sparkling wrote:
       | Something similar: for the original Playstation 2 that was sold
       | in the EU, Sony included a DVD with a BASIC interpreter to
       | classify the console as a personal computer. This little hack
       | avoided some EU import taxes back in the day.
       | 
       | https://www.theregister.com/2000/11/07/sony_adds_basic_to_pl...
        
         | rasz wrote:
         | Same with 29.59 min video recording limit on tons of cameras.
         | https://www.borrowlenses.com/blog/video-recording-limits-in-...
         | 
         | "In 2006, the European Union created a law that added an import
         | duty of 5-12% to any video camera. What determined whether a
         | camera was a video camera? In short, the ability to record
         | longer than 30 minutes. Thus, companies like Canon and Nikon
         | decided to cap their video clip lengths, preventing their
         | enthusiast and prosumer cameras from being considered video
         | cameras."
        
         | Gigachad wrote:
         | Still seems like a win as it made the console more useful.
        
       | Johnie wrote:
       | This is like how tax policies gave rise to White Claw
       | https://nymag.com/intelligencer/2019/09/how-tax-policy-gave-...
        
       | sodality2 wrote:
       | https://web.archive.org/web/20211204094705/https://www.cpcwi...
        
       | cybervegan wrote:
       | That's so unethical - and Alan Sugar is held up as an example of
       | a business genius?
        
       | Isthatablackgsd wrote:
       | Funny enough, I learnt about this from Noel's Retro Lab YT
       | channel last week [0]. When I saw the title, I figured it is
       | about CPC 472 before loading the page. Yup it is. I recommend a
       | video to watch, it is fascinating of why they did and Noel shows
       | the breakdown of this unusable RAM in the video.
       | 
       | [0] https://www.youtube.com/watch?v=_ErfWfjN9iU
        
       | rietta wrote:
       | Glock ships their Glock 19 from Austria to Smyrna, Georgia, with
       | adjustable target sights to have enough points under US import
       | law and then an armorer changes those sights to their fixed self
       | defense sights to be sold in the US market. Presumably the sights
       | get shipped back to Austria for the next batch.
        
       | eb0la wrote:
       | Taxes are one of the most powerful incentives in the world.
       | 
       | For instance, dumping positions at loss before new years eve
       | might help you with your tax bill since you have losses.
       | 
       | And of course, setting up a company in a country where you did
       | buy a lot of spectrum and you have huge losses, effectively
       | creating a tax credit (
       | https://www.reuters.com/article/telefonica-germany/update-2-... )
        
         | djrogers wrote:
         | Selling stocks at a loss is only helpful in the short term, or
         | if you don't think those stocks are going back up. If you
         | harvest a loss for a tax deduction on December 31, and the
         | stock goes back up by the end of January so you'd be even, you
         | are way behind - because the loss only comes back to you at
         | your highest tax rate.
        
           | brilee wrote:
           | Figuring out how to defer taxes is equivalent to receiving a
           | free loan from the government, which can be used to profit on
           | the float.
        
           | vmception wrote:
           | > and the stock goes back up by the end of January so you'd
           | be even, you are way behind
           | 
           | there are ETFs created for the sole purpose of circumventing
           | this, by providing exposure to the same asset or market
           | forces
           | 
           | the wash sale regulation has amendment aimed at preventing
           | this by prohibiting trades of "substantially similar
           | securities", but I don't think it passes muster or has any
           | teeth. you report all the trades to the IRS its up to them to
           | figure out if your UltraShares 3x Inverse Pez Dispenser ETF
           | is substantially similar to the Direxion one
        
           | MR4D wrote:
           | Not quite true.
           | 
           | For instance, I could sell my losses in a growth fund only to
           | buy a different growth fund (not the same index though) and I
           | get to stay in the market.
           | 
           | Ideally you would do this on day 364 of losses to maximize
           | the tax incentive.
        
             | djrogers wrote:
             | It's not a tax incentive though - an incentive encourages
             | you to do something, nobody is encouraged to _lose money_.
             | Also, if one were to do the above, and the growth fund went
             | up, you 'd wind up paying taxes on that gain which would
             | offset the tax deduction you took on the loss when you
             | eventually sold it, whereas you could have just stayed in,
             | waited for it to go back up, and you'd be at a wash.
             | 
             | If someone followed your advice exactly and sold on day 364
             | vs staying in they'd lose even more, as by the time the
             | initial investment goes back up (after day 365) you'd be in
             | long-term capital gains territory, which is a lower tax
             | rate.
             | 
             | That's why I said it only works in the short term -
             | eventually the gov't is gonna get it's money.
        
               | laurencerowe wrote:
               | While the benefits are limited, there are advantages:
               | 
               | 1. Harvesting your capital losses allows you to offset
               | other gains which may be taxable at an earlier date.
               | $1000 today is worth substantially more than $1000 in 10
               | years time. 'Tax deferred is tax avoided.'
               | 
               | 2. You can offset up to $3000 of losses a year against
               | regular income which is taxed at a higher rate.
               | 
               | For me at least while it seems worthwhile to switch index
               | funds to harvest losses when the market falls
               | substantially the upsides aren't enough to justify the
               | lock in of using something like Betterment's automatic
               | tax loss harvesting features of their platform by having
               | you invest in many individual stocks managed by their
               | roboadvisor rather than an index fund.
        
               | MR4D wrote:
               | They are encouraging people to sell.
               | 
               | Most people wouldn't care, but if you're in a high tax
               | bracket and you can sell one to buy another and keep your
               | risk profile roughly the same, you'll do it.
               | 
               | People prefer to pay long term gains and take short term
               | losses. The benefits work in your favor and against the
               | govt. The tax code reflects that, and has for a long
               | time.
        
               | hllooo wrote:
               | it can work if you're offsetting existing short term
               | gains and hold the replacement for >1 year, or if the
               | stock never recovers, in which case you pull forward the
               | deduction
        
         | mhh__ wrote:
         | This is why Carbon Taxes should be preferred over the state
         | dictating policies to companies.
        
           | acdha wrote:
           | Preferred, but you often need more nuance than that -- for
           | example, if a carbon tax is set high enough to deter
           | profitable heavy industrial activities it would require care
           | not to have a disproportionate impact on people who depend on
           | cars, non-electric heating, etc. Those can be mitigated, of
           | course, but it starts to make the tax policy a lot more
           | complicated.
           | 
           | The other problem is that we probably had time for a carbon
           | tax when the idea was first advanced decades ago. It's not
           | clear to me that we can afford a gradual approach now when we
           | really need to be doing things like saying you just can't buy
           | new coal burning equipment at any price, for example.
        
             | Gigachad wrote:
             | Carbon taxes are set up so they cancel regular taxes. So if
             | you use the average amount of greenhouse gasses, you come
             | out equal, if you use more than the average, you come out
             | worse, and if you use less than the average you come out
             | better. So overnight not a whole lot changes but everyone
             | enters a race to use the least greenhouse gasses.
        
           | dan-robertson wrote:
           | Carbon taxes seem to be pretty unpopular and I think it's a
           | failure of imagination for climate economists to keep
           | repeating the same idea instead of trying to find things that
           | are more palatable.
        
             | Teknoman117 wrote:
             | Of course they're unpopular. No one wants to pay for the
             | total lifecycle costs of what they do.
        
             | young_unixer wrote:
             | Being against climate change and against carbon taxes at
             | the same time basically boils down to "I want everyone else
             | to work hard on solving this problem, except for me. I want
             | to keep benefiting from the low prices that the pollution
             | economy has made possible, but I don't want any pollution."
             | 
             | I don't think there's any reasonable solution that will
             | appease those people.
        
             | NoboruWataya wrote:
             | Maybe I'm too pessimistic, but I'm pretty sure any solution
             | that is drastic enough to actually work will be
             | unpalatable. "Somebody else will pay for it" is the only
             | solution anyone wants to hear.
        
         | 8ytecoder wrote:
         | Important to note that you can't buy back the same
         | stock/instrument and claim capital loss in most countries
        
           | fragmede wrote:
           | Tis a _very_ important note for as an amature tax-
           | advantageous practice! You _can_ buy something similar,
           | though. eg trade AMD for Intel or some such. Where investors
           | are concerned about markets rather than invidivuals stocks
           | (AMD and INTC are both hardware tech stocks), the notion is
           | that a rising tide lifts all boats, and that large, sector-
           | related good news for Intel is good news for AMD. It 's not
           | strictly true, obviously, but it's close enough that the
           | practice is worthwhile.
        
       | geocrasher wrote:
       | This reminds me of the Subaru BRAT in the early '80s. There was a
       | 25% tarrif on imported pickups. So Subaru added two plastic jump
       | seats in the back of the BRAT, even making them face backwards.
       | No seat belts as I recall just handles. They weren't even really
       | intended to be used. They were just cheap plastic. But they
       | served the purpose of making the vehicle a four-seater car
       | instead of a pickup, with only a 2.5% tarrif.
       | 
       | Tarrif averted, thousands sold!
       | 
       | https://en.m.wikipedia.org/wiki/Subaru_BRAT
        
         | bko wrote:
         | That's fascinating. I remember hearing there about a giant book
         | on import taxes on apparel with various definitions. For
         | instance, "sandals" may be taxed X but "open toed shoes" may be
         | taxed Y. Apparently these rates drive fashion trends to an
         | incredible degree where even small modifications to a product
         | could totally change the economics.
        
           | eli wrote:
           | There's a famous example that Converse All Stars included a
           | very thin fuzzy lining along the outside of the soles so that
           | they could qualify under the "slipper" tax instead of the
           | higher "sneaker" tax.
        
           | matsur wrote:
           | Said giant book: https://hts.usitc.gov/current
        
             | bko wrote:
             | The legends are true.
             | 
             | The differences could be huge
             | 
             | > Footwear with open toes or open heels; footwear of the
             | slip-on type, that is held to the foot without the use of
             | laces or buckles or other fasteners, the foregoing except
             | footwear of subheading 6402.99.33 and except footwear
             | having a foxing or a foxing-like band wholly or almost
             | wholly of rubber or plastics applied or molded at the sole
             | and overlapping the upper:
             | 
             | >> Having outer soles with textile materials having the
             | greatest surface area in contact with the ground, but not
             | taken into account under the terms of additional U.S. note
             | 5 to this chapter 12.5%
             | 
             | >> Other 37.5%
             | 
             | > Sandals and similar footwear of plastics, produced in one
             | piece by molding. 3%
        
         | albatross13 wrote:
         | Life uh...finds a way.
        
         | philk10 wrote:
         | Are Jaffa cakes classed as biscuits or cakes?
         | https://www.bbc.com/news/magazine-38985820
        
           | bryanlarsen wrote:
           | That's a great article. Dives into philosophy without getting
           | wishy-washy. Must have been a fun article to write.
           | 
           | > And if it's true to say, "a Jaffa Cake is a cake" (or "a
           | Jaffa Cake is a biscuit") then that also tells us something
           | about the world, i.e. about the properties of a Jaffa Cake,
           | as well as about the meaning of the word "cake".
           | 
           | And of course it's even more fun because I have to mentally
           | substitute "cookie" every time I read "biscuit".
        
             | philk10 wrote:
             | yeh, as a Brit who's been in the US for 10 years now i
             | still have to do the cookie/biscuit chips/crisps
             | fries/chips thing
        
               | kingcharles wrote:
               | LOL. Same.
        
           | inanutshellus wrote:
           | now you've got me wondering about those old Fig Newtons
           | commercials "it's not a cookie, it's fruited cake!"
        
         | HeavenFox wrote:
         | There's also the Ford vs Chicken Tax; basically U.S. import
         | tariff for passenger van is 2.5% and cargo van is 25%, so Ford,
         | which manufactured their Transit van in Turkey, installed seats
         | in factory and stripped the seats once they arrived in the U.S.
         | 
         | Now looks like they are in trouble for this scheme.
         | 
         | https://jalopnik.com/ford-faces-potential-1-3-billion-fine-f...
         | 
         | (And why it's called Chicken Tax is another fascinating
         | story...)
        
           | bentcorner wrote:
           | There's also the infamous _Toy Biz, Inc. v. United States_
           | case where Marvel Comics argued that their X-Men toys where
           | "nonhuman toys" and not dolls to avoid an import tax.
           | 
           | https://en.wikipedia.org/wiki/Toy_Biz%2C_Inc._v._United_Stat.
           | ..
           | 
           | The irony is that in the X-Men universe, the X-Men fight for
           | a unification of mutants and humans.
        
             | autoexec wrote:
             | Still, technically true though I'd think. Mutants aren't
             | human. The X-Gene makes them "Homo sapiens superior" and
             | distinguishes them from humans who were mutated by other
             | means (radiation, spider bites, etc). Do X-men want to
             | erase the distinction or do they just want peaceful
             | coexistence between the two species?
        
               | quietbritishjim wrote:
               | I'm not saying this would affect a court ruling, but as a
               | point of curiosity: technically "human" means the _homo_
               | genus, not just the _sapiens_ species. So Neanderthals
               | for example, or _homo erectus_ , are both human. The
               | X-men would be human too, if they were indeed _homo
               | sapiens superior_.
        
               | cgriswald wrote:
               | As species boundaries go, human/mutant is incredibly
               | arbitrary. Either a mutant or a human can be created from
               | a pairing of human-human, mutant-human, or mutant-mutant.
               | It would be like classifying blonde people as a different
               | species.
        
           | notch656a wrote:
           | I'm guessing they're only trouble because they took the seats
           | out. Probably cheaper just to leave them in, and sell along
           | with wrench to remove them 'in case it's needed for repair.'
           | A friendly source will publish in a trade magazine it's the
           | same van after 12 minutes to remove the seats, and the scheme
           | will continue.
        
             | fredoralive wrote:
             | According to an article about it[1], Ford also removed /
             | panelled in various windows as well, so conversion probably
             | isn't as trivially DIYable as just removing some token
             | seats.
             | 
             | Although I suppose van buyers are slightly more likely to
             | know someone with a welding torch and some steel sheets
             | than the average person, so perhaps they missed a trick...
             | 
             | [1]https://www.wsj.com/amp/articles/SB125357990638429655
        
           | Hokusai wrote:
           | > Now looks like they are in trouble for this scheme.
           | 
           | All these cheats will never be accepted for working
           | individuals. Corporations get a different flavor of justice.
           | Even then they push it to the limits and dinner times find a
           | burocrat in the pertinent agency willing to push forward a
           | rightful punishment.
        
             | ethbr0 wrote:
             | SMB and sole proprietorships get away with ridiculous tax
             | things constantly! The only difference is they usually
             | don't try to take it to the Supreme Court when the IRS
             | audits them.
        
           | Pasorrijer wrote:
           | Yeah I remember reading that the Ford employees on the US
           | side got the removal time down to 12 minutes a van.
        
             | gumby wrote:
             | Given the cost of labor it was probably worth doing some
             | design engineering to make the removal as easy as possible
        
           | PaulDavisThe1st wrote:
           | Perhaps a more relevant and legally robust example is the
           | Mercedes Benz Sprinter, which is manufactured in Germany, but
           | US-bound vehicles have various parts removed before shipping.
           | A facility in NC reassembles the vehicles (the removed parts
           | are shipped with the van) once they arrive, which reduces or
           | eliminates the tax.
        
           | jrockway wrote:
           | Wow. I hope the government loses their lawsuit here. Customs
           | & Border Protection should have absolutely no jurisdiction
           | over what an item is used for once it enters the country.
        
             | colejohnson66 wrote:
             | Ford lost in 2019. An appeal to the Supreme Court was
             | denied.[0] My non-lawyer understand of the issue wasn't so
             | much that they were avoiding a tariff ("tariff
             | engineering"), but that they were removing the seats upon
             | entry. In contrast with the BRAT where the dummy seats were
             | still there when sold.
             | 
             | [0]: https://www.autoblog.com/2021/06/03/ford-transit-
             | connect-imp...
        
               | nathanvanfleet wrote:
               | So in your view they just felt like adding seats and then
               | removing them later?
        
               | harles wrote:
               | I'd expect some were also sold with the seats, they just
               | changed the default config. I wonder what the ratio was
               | though.
        
               | R0b0t1 wrote:
               | This doesn't really assuage his concern. The government
               | is still dictating what you do with items.
               | 
               | CBP is one of the worst infringers upon personal rights,
               | I wouldn't defend them.
        
               | dragonwriter wrote:
               | > The government is still dictating what you do with
               | items.
               | 
               | Well, no, they are dictating what taxes you owe based on
               | intent, and using consistent patterns of behavior as
               | evidence of ongoing intent.
               | 
               | This isn't Ford _changing their mind_ about the purpose
               | of the vehicle after importing them.
        
               | babypuncher wrote:
               | They aren't telling you what you can do with your items.
               | They are telling you what taxes you owe based on the
               | intended function of said item.
        
               | R0b0t1 wrote:
               | The power to tax is the power to destroy. The same
               | overzealous power they have to tell me what my usage
               | intent was also allows them to totally ban items that
               | aren't actually banned.
        
               | etskinner wrote:
               | I wonder if they could, in theory, sell you the car for
               | 150% of it's final price (so that they seats are there
               | when sold), then buy back the seats immediately for 50%
               | of its price. The invoice would say something like: Car
               | with passenger seats: $15,000; Passenger seat buyback:
               | $5,000; Total after buyback: $10,000.
               | 
               | That way everyone gets what they want, and they've
               | technically sold it with the seats still installed.
        
               | [deleted]
        
               | babypuncher wrote:
               | Frankly I think our justice system should be less
               | tolerant of "hacks" like this. They clearly violate the
               | intent of the law, even if technically following it to
               | the letter.
        
               | cgriswald wrote:
               | I prefer judges and lawyers interpret what the law says,
               | not what they believe lawmakers _meant_ to say. It is
               | lawmakers responsibility to craft quality laws. Such
               | hacks expose weaknesses in the laws as written.
               | 
               | Edit: ... _when successful._
        
               | dataflow wrote:
               | > It is lawmakers responsibility to craft quality laws.
               | 
               | Judging by how hard it is for programmers to write bug-
               | free instructions for literal computers, I'm not sure
               | your expectation of flawless legislation is something
               | realistic for mere mortals.
        
               | noizejoy wrote:
               | And I prefer to see judges and lawyers as safety valves
               | for mitigating badly written legislation.
        
               | noizejoy wrote:
               | While I agree with your well intentioned sentiment,
               | "intent" is even more nebulous and arguable.
        
               | laurent92 wrote:
               | Isn't a lot of securization necessary for two more seats?
               | Adding floor reinforcements, seatbelts, and more
               | importantly, passing the crash tests with two more seats?
        
               | [deleted]
        
               | thaeli wrote:
               | They have to do that for the passenger version of the van
               | anyway.
        
               | kentonv wrote:
               | Law isn't interpreted by computers, it is interpreted by
               | human judges, who generally aren't impressed by such
               | hacks (though you might get lucky).
        
               | dragonwriter wrote:
               | Yeah, when the law allows additional sanction for
               | willful/knowing violation, courts will not only often see
               | through your "clever hack", but also see it as evidence
               | of deliberate wrongdoing.
        
               | bjustin wrote:
               | And collect tax on $20,000 in sales instead of $10,000?
               | Maybe they would be happy if car companies used this
               | scheme.
        
               | colejohnson66 wrote:
               | Then the government would collect income tax _from the
               | owner_ on that rebate as well, no? Seems like an
               | expensive operation.
        
             | gamblor956 wrote:
             | The issue was that the seats were only added for the
             | purposes of evading tax, and the tax evasive purpose was
             | established by Ford systematically removing the seats prior
             | to sale.
             | 
             | Ford would have been fine if they had kept the seats in the
             | car until they were sold and left it up to the customer to
             | remove the seats. (This would not have affected the
             | customer, tax-wise, since the import duty is paid by Ford,
             | and by the time the customer has removed the seats, they
             | have already paid the sales tax on the vehicle.)
        
             | khuey wrote:
             | Why? Borders are full of rules of the form "X can cross for
             | purpose A but not for purpose B" for both people and goods.
        
               | jrockway wrote:
               | How long does the rule apply for? If someone removes
               | seats from their van, is that tax evasion? What if it's
               | temporary? If an individual can do it, why not Ford?
               | 
               | The problem I have here is how easy it is to avoid the
               | tax. CBP shouldn't have any jurisdiction over car
               | modifications and repairs; that responsibility falls to
               | different agencies.
        
               | fredoralive wrote:
               | It seems that the issue was that Ford, the importer,
               | changed the class of vehicle between import and being
               | sold inside the US. Presumably if you aren't the importer
               | you can go wild (IANAL).
        
               | jrockway wrote:
               | Yeah, so they're really just getting punished for not
               | dotting their is and crossing their ts. They could create
               | a subsidiary with the same board of directors as Ford
               | that they sell the cars to, and then the subsidiary does
               | the dirty work of repurposing the cars from passenger
               | vehicles to cargo vehicles. They skipped paying the $100
               | corporate registration fee, so now they're on the hook
               | for a billion dollar fine that would have been legal if
               | they added another company to the mix? Give me a break.
        
               | gowld wrote:
               | You are arguing that because it is possible to break the
               | law and escape on a technicality, the law is invalid in
               | all cases.
        
               | nybble41 wrote:
               | If they "escaped on a technicality" then they weren't
               | breaking the law. That "technicality" is part of the law.
               | 
               | The indefensible part is tying a large difference in
               | import tariffs to how many seats are installed. Absurd
               | outcomes such as this one highlight systematic flaws in
               | the rules. If the basis for the tariffs were logically
               | sound you wouldn't be able to work around them without
               | addressing the reason the tariffs were imposed in the
               | first place.
        
               | beerandt wrote:
               | No- the norm is for things to be imported, then combined
               | or modified and sold as a new product, without paying the
               | import tax based on the new product.
               | 
               | If import tax on a cpu is x, and motherboard is y, should
               | you have to pay computer import tax z if you build and
               | sell PCs? After all, what imported cpus and motherboards
               | aren't destined to be assembled computers?
        
               | fredoralive wrote:
               | I was more talking about this particular case, where it
               | seems it was judged that Ford didn't make a new product
               | out of imported parts, but importing a finished vehicle
               | as one thing, and selling it as another after minor
               | modification.
               | 
               | It is a more normal way around these sorts of tariffs to
               | import a vehicle as a kit of parts (CKD / "Complete
               | knocked down"), and perform some level of final assembly
               | in the end country. The sort of rules you talk about
               | apply then, you pay the car parts import rate on the kit,
               | not the (presumably higher) rate for a complete car[1].
               | 
               | [1] Or otherwise avoid whatever other protectionist
               | measures mean you can't just import a fully built car.
        
               | KarlKemp wrote:
               | The fact I can't tell you the individual grain of sand
               | that makes the difference does not imply that the concept
               | of a "sand beach" is meaningless.
        
               | babypuncher wrote:
               | The rule applies to the entity responsible for importing
               | the item. Since Ford was importing the vehicle and then
               | altering it immediately afterwards to escape the tax,
               | they are in the wrong. If they instead sold it as-is to a
               | customer, and the customer then made the modification
               | themselves, it wouldn't be a problem.
        
               | AnimalMuppet wrote:
               | The courts tend to take a dim view of "clever hacks" to
               | get around the law, where the intent is clearly to
               | circumvent the law and the action has no other purpose.
               | They don't always rule that way. But if you pull this
               | kind of stunt, you risk the court saying, "Very clever.
               | No."
        
               | gowld wrote:
               | Corporate accounting is annindustry that only exist as
               | "clever hacks". It usually works, unless you are
               | politically out of favor.
        
             | mc32 wrote:
             | It was pretty transparent that they did that to circumvent
             | regulation.
             | 
             | Imagine Coca-Cola getting clearance for importing coca
             | leaves for flavoring but then instead sells it to a third
             | party who processes it for something else.
        
               | notch656a wrote:
               | Am I the only one that sees no problem with that? Why the
               | hell should coca-cola be responsible for what someone
               | else does with coca leaves?
        
             | tshaddox wrote:
             | > Customs & Border Protection should have absolutely no
             | jurisdiction over what an item is used for once it enters
             | the country.
             | 
             | I mean, that's the whole point of the import tariff law, so
             | if the CBP has jurisdiction to enforce tariff law, surely
             | how the item is used (or at least _how the item is intended
             | to be used_ or _how the item can reasonably be expected to
             | be used_ ) is the primary factor to consider.
        
             | RC_ITR wrote:
             | It also goes to show how corrupt the import tax system is.
             | 
             | Why SHOULD a cargo van have higher import taxes than a
             | passenger van, other than to serve the needs of some random
             | private company?
             | 
             | Even moreso, I wouldn't be surprised if Ford lobbied FOR
             | those laws before changing its mind in where to produce a
             | particular sku
        
               | nickff wrote:
               | > _" Why SHOULD a cargo van have higher import taxes than
               | a passenger van, other than to serve the needs of some
               | random private company?"_
               | 
               | Have you read a tariff schedule? They're full of this
               | stuff, which seem to be protections or favors for
               | specific industries. Anti-dumping protections seem
               | similar.
        
               | RC_ITR wrote:
               | >It also goes to show how corrupt the import tax system
               | is.
        
               | nickff wrote:
               | I am not sure it is 'corrupt', though that may be a
               | question of semantics. I didn't mean to disagree with
               | you, just point out how rampant the issue was.
        
               | colejohnson66 wrote:
               | No lobbying involved. It's the remnants of a tariff war
               | with France and Germany:
               | https://en.wikipedia.org/wiki/Chicken_tax
        
               | RC_ITR wrote:
               | The Chicken Wars brought the powerful agricultural lobby
               | in France into direct conflict with the powerful
               | agricultural lobby in the United States. Not
               | surprisingly, France, the largest poultry producer in the
               | EEC, was unwilling to embrace a free trade policy whose
               | benefits would be spread among consumers throughout
               | Europe. The benefits of protectionism were concentrated
               | in France and the costs were borne by consumers
               | throughout Europe. Indeed, the stakes were sufficiently
               | high that France might have quit the EEC had not French
               | agricultural interests been appeased.
               | 
               | That's from the 'further reading' link on Wikipedia.
        
               | colejohnson66 wrote:
               | Yes, but I meant lobbying from Ford for said tariff as
               | you suggested.
        
               | RC_ITR wrote:
               | At the same time, the U.S. auto industry was suffering
               | its own trade crisis due to competition from growingly
               | popular foreign cars and trucks. During the early 1960s,
               | sales of Volkswagens surged as America's love affair with
               | the iconic VW "Bug" coupe and Type 2 van shifted into
               | overdrive. By 1963, the situation got so bad that Walter
               | Reuther, president of the United Automobile Workers Union
               | (U.A.W.), threatened a strike that would have halted all
               | U.S. auto production just before the 1964 presidential
               | election.
               | 
               | Running for reelection and aware of the influence the
               | U.A.W. had in Congress and in the minds of voters,
               | President Johnson looked for a way to persuade Reuther's
               | union not to strike and to support his "Great Society"
               | civil rights agenda. Johnson succeeded on both counts by
               | agreeing to include light trucks in the Chicken Tax.
               | 
               | While U.S. tariffs on other Chicken Tax items have since
               | been rescinded, lobbying efforts by the U.A.W. have kept
               | the tariff on light trucks and utility vans alive. As a
               | result, American-made trucks still dominate sales in the
               | U.S., and some very desirable trucks, like the high-end
               | Australian-made Volkswagen Amorak, are not sold in the
               | United States.
               | 
               | https://www.thoughtco.com/chicken-tax-4159747
        
               | e4e78a06 wrote:
               | "American-made" = all the labor-intensive parts are made
               | abroad and only the final car is assembled in the US. The
               | USMCA merely requires that a majority or plurality
               | (depending on the item) of item content come from a
               | member nation.
               | 
               | If there was a war American industry would shut down
               | overnight.
        
               | vilaca wrote:
               | > benefits would be spread among consumers throughout
               | Europe
               | 
               | The EU has banned poultry meat from the US on
               | psytosanitary grounds for more than two decades.
        
               | Jon_Lowtek wrote:
               | Which is a lot younger than the chicken tax from the
               | 1960s
               | 
               | For some context: it is about washing chicken meat with
               | chlorine dioxide to kill bacteria, especially salmonella,
               | at the slaughterhouse. It may seem ridicoulous that
               | europeans prefer salmonella to chlorine on their
               | chickens, but european food health and safety argues that
               | the practice is needed in the USA due to the very
               | unsanitary, and therefor cheaper, chicken meat
               | production, whereas europa requires high standards during
               | production instead of washing the end product in
               | chlorine, and is therefore more costly. Some argue this
               | cost difference is the major driver of the ban, and it is
               | not an actual health and safety issue.
        
               | w0mbat wrote:
               | The US also has more lax rules than Europe has governing
               | what food chickens can be fed. Without going into the
               | rather revolting details, this is a legitimate reason to
               | exclude US chicken.
        
               | jrockway wrote:
               | It sounds like the age-old market segmentation thing.
               | People driving their kids to soccer practice don't make
               | money with their vans, so they'll notice the higher price
               | (and if they find out their congresscritter was
               | responsible, they'll vote for a different one).
               | Meanwhile, cargo vans are used to make money, so the
               | users can bear the extra cost. There's also overtones of
               | taxation without representation going on here;
               | individuals can vote, and so they have lower taxes than
               | businesses, which can't vote. (It's too bad that Ford
               | doesn't dump the seats they take out of the van into
               | Boston Harbor! Someone would probably still get the
               | reference.)
               | 
               | It's the same game that SaaS companies play. Everything
               | is free until you want SSO, then it's $30,000 a year. If
               | you need SSO, you can afford it.
               | 
               | Personally, I hate this in both cases. I think we could
               | save everyone a lot of time if every vendor you did
               | business with just grabbed you by the ankles and flipped
               | you upside down and took whatever money fell out of your
               | pocket. Why tiptoe around what they really want...
        
               | gowld wrote:
               | Would you prefer that only rich people could buy things?
               | Without price discrimination, the market clearing price
               | is higher.
        
               | titusjohnson wrote:
               | > There's also overtones of taxation without
               | representation going on here; individuals can vote, and
               | so they have lower taxes than businesses, which can't
               | vote.
               | 
               | I'm confused about this statement. Businesses are
               | comprised of individuals, and those individuals (if
               | citizens) can vote. So the business has a vote through
               | the voice of its employees and representation in
               | government through the people employees at a business.
               | 
               | Or are you saying the legal fiction of business
               | personhood should give the business a ... vote? That just
               | sounds like business owners (individuals) getting 2 or
               | more votes then...
        
               | slt2021 wrote:
               | maybe businesses can't vote, but they can buy votes of
               | the congressmen directly.
               | 
               | why go through the hassle of voting and deal with
               | uncertainty whether you voted a right person, when you
               | can just buy with cash whatever law/regulation you need
        
               | NoboruWataya wrote:
               | > Or are you saying the legal fiction of business
               | personhood should give the business a ... vote? That just
               | sounds like business owners (individuals) getting 2 or
               | more votes then...
               | 
               | I believe the more common proposal is to resolve the
               | contradiction the other way: remove taxes on
               | corporations, as the individuals comprising the
               | corporations generally already pay taxes. That would be
               | politically quite unpopular, but there is a certain logic
               | to it and it would also make taxes easier to administer
               | and more difficult to avoid. And it doesn't need to be as
               | pro-rich as it sounds - you could just replace
               | corporation taxes with other taxes targeting wealthy
               | individuals, such as a wealth tax or higher income taxes.
        
           | db65edfc7996 wrote:
           | Planet Money did[0] a story about the Chicken Tax.
           | 
           | [0] https://www.npr.org/sections/money/2017/01/25/511663527/e
           | pis...
        
         | [deleted]
        
         | [deleted]
        
         | Johnny555 wrote:
         | Oddly, the Subaru Baja is much more car-like than the Brat ever
         | was (the Baja has 4 real seats, not jump seats), but when I had
         | one, it was registered as a pickup, not a car.
        
           | njarboe wrote:
           | The "truck" (trucks, SUVs etc) class of vehicles in the US
           | have lower average gas mileage requirements than cars so many
           | cars are made just large enough to be classified as "trucks"
           | even though they are marketed still as cars. Subaru did this
           | with almost all their cars back in 2004[1].
           | 
           | [1]https://web.archive.org/web/20210609082852/https://www.nyt
           | im...
        
         | fredoralive wrote:
         | Recently in Europe we had a kinda reverse - Suzuki removed the
         | rear seats of the Jimny, a small 4x4, to reclassify it as a
         | commercial vehicle to qualify for laxer CO2 emission standards.
        
           | bitL wrote:
           | Yeah, but they also really dumbed down the interior and
           | lowered roof quality, while selling it for the same MSRP as
           | the previous model (still + 10k from the actual sellers,
           | bringing it to Toyota RAV4 territory price-wise).
        
             | fredoralive wrote:
             | Ouch, I think I'd seen something about them swapping to
             | steel wheels instead of alloys, but I didn't realise it had
             | generally been downgraded. And that price...
             | 
             | Pity, as I kinda like the Jimny even if it makes no sense
             | at all for me to own one.
        
         | tablespoon wrote:
         | > This reminds me of the Subaru BRAT in the early '80s. There
         | was a 25% tarrif on imported pickups.
         | 
         | Isn't that tariff still in place?
         | 
         | It seems like they're smarter with the enforcement, so tricks
         | like that don't work anymore:
         | 
         | https://en.wikipedia.org/wiki/Chicken_tax
         | 
         | > The U.S. Customs Service changed vehicle classifications in
         | 1989, automatically relegating two-door SUVs to light-truck
         | status.[4] Toyota Motor Corp., Nissan Motor Co., Suzuki
         | (through a joint venture with GM), and Honda Motor Co.
         | eventually built assembly plants in the U.S. and Canada in
         | response to the tariff.[1]...
         | 
         | > Customs and Border Protection (CBP) ruled in 2013 that
         | Transit Connects imported by Ford as passenger wagons and later
         | converted into cargo vans should be subject to the 25% duty
         | rate applicable to vans and not to the 2.5% rate applicable to
         | passenger vehicles. Ford sued and finally, in 2020, the Supreme
         | Court declined to hear the case which confirmed the position of
         | CBP.[22]
        
         | fooey wrote:
         | A seafood company in Canada has a 100 foot section of train
         | track, where they load trucks on and right back off, in an
         | attempt to get around the Jones Act requirement that goods
         | shipped between 2 points in the US must use US flagged vessels
         | 
         | https://www.adn.com/business-economy/2021/09/15/feds-accuse-...
        
           | mmcgaha wrote:
           | We need something like the senate filibuster debate rule for
           | taxes. Basically just state that there is this thing I can do
           | to skirt the tax system so I declare a tax evasion without
           | having to actually make people do stupid stuff.
        
             | [deleted]
        
             | stenl wrote:
             | Or maybe we need the opposite: basically just state that
             | you did this stupid stuff only to avoid the tax, so you
             | should pay the tax anyway.
        
               | version_five wrote:
               | The solution to a bad or poorly written law is not to
               | leave it on the books and have some "oh well we actually
               | meant" thing that means it can be arbitrarily applied in
               | a different way than written.
               | 
               | Courts can interpret laws if the interpretation is the
               | problem. If there is just a stupid loophole, then either
               | the law itself makes no sense (as seems to apply to this
               | Jones Act) or it needs to be reworded to align with its
               | intent.
               | 
               | This reminds me of all the california electricity
               | deregulation games where Enron et al moved power out of
               | state and back, or had plants go down strategically for
               | maintenance in order to gain the system. The correct
               | solution is not to say "play nice, you know what we
               | meant". It's to have a consistent and enforceable set of
               | rules that dont admit gaming.
        
               | ggrrhh_ta wrote:
               | Laws, at least in many European countries, are prefaced
               | with a preamble, introduction, or Vorwort, that explains
               | a bit of the history, the motivation, the underlying
               | principles, the philosophy, the practicality, and the
               | guidelines for interpretation of that law. The words, as
               | written, are not to be taken, in any case literally.
               | Moreover, a literal interpretation contradicting the
               | spirit of the law is unlawful, and that is one of the
               | principles of many legal systems. Using a loophole that
               | contradicts the law is unlawful; imagine the law says you
               | have the right to water your plants in your balcony;
               | however, you only do it when the neighbor below is
               | sitting at their balcony with the intention to bother
               | them: you are abusing the law and committing an unlawful
               | act.
        
               | BizarroLand wrote:
               | A law system like that requires wisdom. America has a lot
               | of smart but almost no wisdom, so it would be chaos and
               | anarchy if we suddenly switched to such a system.
        
               | [deleted]
        
               | gamblor956 wrote:
               | You're being downvoted but that's actually how tax works
               | in the U.S. and Europe.
               | 
               | Tax is one of the few areas of law where activities can
               | be declared illegal and subject to punitive sanction
               | after the fact. For example, the fictive loss tax shelter
               | scheme that was popular 15 years ago. Fictive losses were
               | technically legal at the time the scheme began (in the
               | sense that they were legal within the letter of the law
               | but violated the intent of the law), and weren't
               | explicitly stated to be illegal until years later
               | (https://en.wikipedia.org/wiki/Jenkens_%26_Gilchrist).
        
             | BolexNOLA wrote:
             | That defeats the purpose of the law. If they're flagrantly
             | violating the spirit and intent by _barely_ passing the
             | technical requirement, then the law should either A) be
             | removed or B) retooled to address the loophole.
             | 
             | We should never encourage ignoring certain laws or it
             | undermines the whole system. It's why I don't support
             | states legalizing weed under the federal government's
             | nose/while they turn a blind eye. Sure, we like it for
             | weed, but what happens when a super conservative state does
             | something less popular like, say, functionally bans gay
             | marriage and goes, "well you aren't enforcing drug laws,
             | why should they get a pass but not us?"
             | 
             | I'm sure there are better examples but hopefully I'm
             | getting my point across. Exceptions = weakening of the
             | established structure. I don't know about you, but I like
             | that "the law is king" in the US. Mostly because we can
             | change them.
        
               | sneak wrote:
               | > _That defeats the purpose of the law. If they're
               | flagrantly violating the spirit and intent by barely
               | passing the technical requirement, then the law should
               | either A) be removed or B) retooled to address the
               | loophole._
               | 
               | Yes, indeed. It completely defeats the purpose of the
               | law, which is why the suggestion is akin to your A
               | solution (that it should be invalidated/removed).
               | 
               | The law doesn't encode "purpose" or "spirit", the law
               | only exists as written. When applying the law, and tax
               | law especially, it's counterproductive to speculate as to
               | "spirit" or "purpose", and best to focus just on _what
               | the law actually is_ , because that's the only part that
               | really counts as "democratic". Intentions and ideals
               | weren't voted on, the actual literal text of the law was.
        
               | vineyardmike wrote:
               | > but what happens when a super conservative state does
               | something less popular
               | 
               | Or like abortion. The new abortion rules in conservative
               | states are betting they can sway the federal gov if a
               | lawsuit arises, but its based on the assumption they'll
               | get to ignore the gov.
        
               | spiffytech wrote:
               | > what happens when a super conservative state does
               | something less popular like, say, functionally bans gay
               | marriage
               | 
               | That happened in North Carolina (albeit before weed
               | legalization had gained momentum):
               | 
               | https://en.wikipedia.org/wiki/North_Carolina_Amendment_1
        
               | BolexNOLA wrote:
               | Luckily it was shot down, but yeah, my concern is the
               | serious precedent weed legalization is setting. I like
               | the outcome, I am scared of the precedent.
        
         | Spooky23 wrote:
         | Ford was doing this a couple of years ago with their small
         | van... the Transit Connect (iirc).
         | 
         | They would import from Europe with seats, but remove the seats
         | at the port and ship them right back.
        
           | aaaaaaaaaaab wrote:
           | Almost. The back seats were actually shredded.
        
         | ninly wrote:
         | Its reputation is eternal:
         | http://achewood.com/index.php?date=12012003
        
           | Lammy wrote:
           | Should have stuck with the 1978 Volvo 244GLE
           | http://achewood.com/?date=05102005
        
         | magicalhippo wrote:
         | Here in Norway we have the infamous "E6 ham". We have an import
         | tax on dry-cured ham[1], but not unprocessed meat.
         | 
         | Someone figured out it was cheaper then to import unprocessed
         | meat from Spain to Norway, turn the truck around as soon as
         | they were customs cleared and drive the 3000 km or so back to
         | Spain for curing.
         | 
         | Once cured they'd re-import the processed meat, which now has a
         | different tariff due to being "Norwegian" ham processed abroad,
         | while still being proper Spanish dry-cured ham.
         | 
         | So a ~6000 km (3700 miles) detour to save on import taxes,
         | yay...
         | 
         | The name comes from the E6 route[2] the trucks drive through
         | Sweden and into Norway.
         | 
         | [1]: https://en.wikipedia.org/wiki/Ham#Dry-cured
         | 
         | [2]: https://en.wikipedia.org/wiki/European_route_E6
        
           | Hello71 wrote:
           | source? upon searching for "e6 ham", "norway ham tax", "e6
           | skinke" etc found only this post.
        
             | danielfoster wrote:
             | Not everything is on the Internet.
        
               | jonnycomputer wrote:
               | Heathen!
        
               | actually_a_dog wrote:
               | I guess it's not that "infamous," then, is it?
        
             | Cederfjard wrote:
             | Quick search found this, from the Norwegian Broadcasting
             | Corporation in 2014: https://www.nrk.no/norge/ellevill-
             | skinkereise-1.11613122
             | 
             | Translated: https://www-nrk-
             | no.translate.goog/norge/ellevill-skinkereise...
        
           | kgc wrote:
           | Maybe they could just send an NFT of the meat to save on
           | transport costs.
        
         | hedgehog wrote:
         | This kind of thing is apparently pretty common. The two that I
         | know of are shoes -> slippers by adding fabric to the bottom
         | and European manufactured vans being imported to the US as
         | passenger vehicles and then converted to cargo after arrival.
        
       | genezeta wrote:
       | > _The CPC472 itself was sold for how many? pesetas (how many?
       | euros)_
       | 
       | As far as I can remember, the CPC472 was sold for the same price
       | as the CPC464. It was never marketed as an actual improvement
       | over the 464 and competition in the market was hard enough to be
       | able to justify a higher price without a clear justification.
       | 
       | Then again my memory is not that good now so anyone feel free to
       | correct me.
        
       | xtracto wrote:
       | This was a pretty interesting read. I had to stretch my Google-fu
       | muscles, but I was able to find the original Spanish import tax
       | law from 1985:
       | 
       | https://www.boe.es/diario_boe/txt.php?id=BOE-A-1985-18847 (Google
       | translation below)
       | 
       | From here: https://www.zonadepruebas.com/viewtopic.php?t=1830
       | 
       | It's funny that they explicitly set the number of RAM KB for
       | machines. I wonder what was the logic?
       | 
       | ---
       | 
       | BY ROYAL DECREE 1215/1985, OF JULY 17, A MODIFICATION HAS BEEN
       | INTRODUCED IN THE TARIFF DUTY ASSIGNED TO SUBHEADING 84.53.B.II
       | OF THE CUSTOMS TARIFF, CONSISTING OF SETTING A SPECIFIC MINIMUM
       | DUTY OF 15,000 PESETAS PER UNIT.
       | 
       | THE BROAD CONTENT OF THE REFERENCE SUBHEADING, IN WHICH DIFFERENT
       | ELECTRONIC COMPUTER PRODUCTS ARE CLASSIFIED AND TAKING INTO
       | ACCOUNT THAT THE MENTIONED SPECIFIC MINIMUM SHOULD ONLY AFFECT A
       | CERTAIN TYPE OF AUTOMATIC MACHINES FOR THE PROCESSING OF
       | INFORMATION, KNOWN SECTORALLY UNDER THE THE NAME OF
       | "MICROCOMPUTERS", MAKES IT ADVISABLE TO COMPLEMENT THE CITED
       | MODIFICATION WITH THE TIMELY CLARIFICATION LIMITING ITS SCOPE.
       | 
       | BY VIRTUE OF IT, AND IN USE OF THE POWER RECOGNIZED TO THE
       | GOVERNMENT BY ARTICLE 6 SECTION 4 OF THE CURRENT TARIFF LAW, AT
       | THE PROPOSAL OF THE MINISTER OF ECONOMY AND FINANCE, AND PRIOR
       | APPROVAL BY THE COUNCIL OF MINISTERS OF AUGUST 28, 1985, I HAVE :
       | 
       | ARTICLE 1. FOR THE PURPOSES OF THE APPLICATION OF THE SPECIFIC
       | MINIMUM RIGHT OF 15,000 PESETAS PER UNIT INTRODUCED IN SUBHEADING
       | 84.53.B.II OF THE CUSTOMS TARIFF BY ROYAL DECREE 1215/1985, OF
       | JULY 17, IT SHALL BE UNDERSTOOD BY TAXABLE UNIT AFFECTED BY THE
       | CITED RIGHT THOSE AUTOMATIC MACHINES FOR PROCESSING INFORMATION
       | THAT CONSIST OF INTEGRATED OPERATIONAL UNITS, WHICH COMPRISE IN A
       | SINGLE ENVELOPE AT LEAST ONE CENTRAL UNIT AND ONE INPUT UNIT,
       | WHETHER OR NOT PROVIDED WITH AN OUTPUT UNIT, AND WHICH HAVE RAM
       | MEMORY WITH CAPACITY NOT EXCEEDING 64 KB.
       | 
       | ART. 2. WITHOUT PREJUDICE TO ITS EFFECTIVENESS FROM JULY 25, DATE
       | OF PUBLICATION OF ROYAL DECREE 1215/1985, THIS ROYAL DECREE WILL
       | ENTER INTO FORCE THE SAME DAY OF ITS PUBLICATION IN THE "OFFICIAL
       | STATE GAZETTE".
       | 
       | GIVEN IN PALMA DE MALLORCA ON AUGUST 28, 1985.-JUAN CARLOS R.-THE
       | MINISTER OF ECONOMY AND TREASURY, CARLOS SOLCHAGA CATALAN.
        
       | PaywallBuster wrote:
       | https://archive.is/pjTzl
        
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