Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: A. Pole

"National sales tax is not going to reduce trade deficit..."

Incorrect.

"...because it will be applied equally yo the American and foreign products."

Exactly! IOW it totally eliminates the bias of our current tax system which actually favors foreign producers over and above our own. It puts US producers on a level playing field and, unlike a tariff, could not be opposed by the WTO or our trading partners since it is not discriminatory (unlike a tariff).

Using tariffs to mask the bias in our corporate income and payroll tax system is a very inefficient way to go.


213 posted on 03/21/2005 11:20:48 AM PST by phil_will1
[ Post Reply | Private Reply | To 210 | View Replies ]


To: phil_will1
IOW it totally eliminates the bias of our current tax system which actually favors foreign producers over and above our own.

What is the purpose for the society to have its own state and government if they are not to be biased in the nation's favor?

It puts US producers on a level playing field and, unlike a tariff, could not be opposed by the WTO or our trading partners since it is not discriminatory (unlike a tariff).

And it puts US workers on a level playing field with China or India. Producers will manage fine in short term as they will fire Americans and move production where the cheap labor is.

If WTO is so sacred that it is more important than national interest than VAT can be used to substitute for the tariffs (other countries use VAT for this purpose).

219 posted on 03/21/2005 11:42:14 AM PST by A. Pole (Proverbs 26:11: "As a dog returneth to his vomit, so a fool returneth to his folly.")
[ Post Reply | Private Reply | To 213 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson