Yes, as you may well suspect, I am quite familiar with Mr. Achtung Amerika.
But, this is not the focus or intent of the article -- the focus and intent is to warn America about the European Liberal/Socialist/Marxist "Tax Harmonization" scheme, which will invariably lead to less FReedom and higher taxes for both US and foreign investors.
Well, even though I'm opposed to globalism, I don't see where providing financial information to foreign tax collection agencies constitutes "Tax Harmonization". We still have our tax system and they have theirs. And I could care less how foreign nations choose to tax their own citizens, whether they're the Euroweenies or OPEC Oil Princes and terrorists. They are not U.S. citizens protected by the guarantees or subject to the responsibilities defined by our Constitution.
The more sinister threat to our sovereignty is the extreme proposition of a National Retail Sales Tax. This abomination places the entire burden of taxation directly on the American consumer while extending the benefits of participation in our free trade zone (defined by the jurisdictional limits of our Constitution) to those who are not bound to observe the common set of laws and regulations established by our Constitution.
There is a hellofa difference between the two! Both the European Liberal/Socialist/Marxist Bastards’ "Tax Harmonization" plan and their plan to invade our financial privacy are an affront to the US Constitution. Every Real American should oppose these ideas.
You also manifest your confusion when you state that: "The more sinister threat to our sovereignty is the extreme proposition of a National Retail Sales Tax. This abomination places the entire burden of taxation directly on the American consumer while extending the benefits of participation in our free trade zone (defined by the jurisdictional limits of our Constitution) to those who are not bound to observe the common set of laws and regulations established by our Constitution."
First, we have been through this before, Willie, and you still don't get it, do you? Consumers already pay all taxes paid in the United States! And, I am not going to argue the point with you again.
Second, the National Retail Sales Tax is no threat to our sovereignty. On the contrary, it will dramatically improve America's economy and transform America into the economic sponge of the world.
If foreign and domestic investors were all treated equally (as in the National Retail Sales Tax), the capital flight that Action-America speaks to would immediately reverse and become a capital inflow. As you well know, our present tax system punishes domestic investors and rewards foreign investors (foreign investors pay no US taxes).
Five (or nine, depending on who is counting) trillion dollars of foreign investment would be forced from America if we foolishly agree to "Harmonize" our tax system and require American financial institutions to report foreign investor income. If foreign investment in America is forced out, the American economy will collapse.
As for advantaging foreign companies by eliminating the corporate income tax, you have got that wrong, too. In truth, the National Retail Sales Tax, by eliminating the corporate income tax, levels the playing field between foreign and domestic businesses.
All of our trading partners have what is known as a “territorial, border adjustable” tax system. That is, goods exported from these countries bear little to no federal tax burden in their country of origin. Our trading partners impose their federal tax on imported goods when they cross the border.
America, OTOH, does not have a territorial, border adjustable tax system. Under the income tax, US companies must include the "cost of government" in their pricing structure. Exported US manufactured goods carry that burden with them. To which, the importing country adds their Value Added Tax (most of our trading partners have a VAT of roughly 15-19%), causing the product to carry a “cost of government” of roughly 40% of the retail price (25% US, 15% foreign).
The result is that American products sold into foreign markets suffer a double disadvantage in respect of foreign goods, whereas, foreign goods sold into American markets have no tax cost of government imposed at all.
That is right, my FRiends. Goods imported into America from our major trading partners esentially pay no taxes under the present system because the foreign governments rebate their Value Added Taxes at the border when the goods are exported.
Under the National Retail Sales Tax, all products (domestic and imported) sold in the United States will carry the same burden of federal taxation – it will be whatever the National Retail Sales Tax rate is.
So, if the United States shifts to a territorial, border adjustable tax system like the National Retail Sales Tax, one layer of taxation will be removed from American products both at home and abroad, which should make US products more competitive both at home and abroad.
I fail to see how reducing the burden of taxation on American goods in domestic and foreign markets by 25% will negatively affect our sovereignty.
And I fail to see how treating imported goods exactly the same as domestic goods in respect of the National Retail Sales Tax will negatively affect our sovereignty.