Posted on 01/13/2006 9:34:17 AM PST by Conservative Goddess
When you consider that the US has the highest Corporate Net Income Tax rate in the OECD in conjunction with the disadvantages borne of the fallacious distinction between a direct and an indirect tax.....it is frankly amazing that we have any jobs left in the US.
Imposing protectionist tariffs will only trigger retaliatory measures and exacerbate the problem. It is past time to lay blame for the loss of US jobs precisely where it belongs: At the feet of the US House and Senate.
A heaping helping of blame should be reserved specifically for the members who insist that "Corporations must pay their fair share." Nonsense. Corporations don't pay taxes, people do. The corporate net income tax is the most deceptive and destructive tax we inflict on ourselves and we simply must insist that Congress put an end to the tax and trade charade. Call, fax or e-mail your Congressman and Senators today.
Technical distinction and disertation ping.
This problem is solved with the replacement of the income tax with the Fair Tax, or National Sales Tax. This allows "untaxed goods" to be sent overseas, while consumer products entering the US will subject to the Sales Tax.
Sort of evens the playing field ... doesn't it.
It most certainly would level the playing field....given that a consumption tax such as the FairTax is fully border-adjustable.
But it takes many fewer than 40 to vote it out of committee - and once that happens people will begin to wake up as to the possibilities the FairTax brings - even the pols.
Great post, CG!!!
If anyone would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright and replace them with with a national retail sales tax administered by the states.
H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
Remove the taxation of the producer and tax only at retail sale. A lot of good things happen, not only in regards to international trade but to our economy as well.
The increase in demand for our goods and services with leveling the tax barriers that currently exist due to our corporate income and payroll taxes will quite literally reverse the flow of manufacturing out of this nation overnight.
bttt
Sounds like a good thing all right - why didn't we do it sooner??? Is someone in favor of retaining the I.T.??? Wonder why???
It may be that the SQL crowd and other "anti FairTax" types do not even begin to grasp the effects in foreign trade and US businesses involved therein that this will have.
Seems to me that this effect will be hugely beneficial to the country and its taxpayers also. I think, perhaps, that many of them are so shortsighted as to not care.
"When it repeals FSC, it should also call on the European Union and all other countries to join the US in correcting the mistaken distinction between direct and indirect taxes. Congress should simultaneously urge US trading partners to cease exempting their exports from VAT and cease imposing those taxes on imports. If they do not amend their tax practices within a decent period, the US tax code should at least be amended to exclude export income from US corporate income tax and allow American-made goods and services a fair opportunity to compete in world markets."
Isn't this where the SQLs chime in to say that removing taxes or making them border adjustable won't do any good because currency adjustments would quickly offset any such changes?
Oh, I forgot, that only applies to the FairTax.
Yup - they've been terribly quietly lately, haven't they? Perhaps they realize they've lost.
Nahh, I doubt that.
More likely they are too busy filling their income tax returns to post ;O)
Great find!
Precisely.....
As Dan Burton said to me, paraphrasing: "If you believe that currency adjustments are going to wipe out this difference, then you've got to believe that price theory is meaningless, and that the trade tail will wag the dog of all dollar denominated assets in the world."
I hope I did his words justice.
Roger that.
Well, my two senators are on board. Now light a fire under all of yours.
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