So how do you suggest we win this war?
During the 2000 campaign, GWB stated that his support for MFN status for China was dependent on their reducing their import tariffs by or to x percentage by 2005. He won't be in office then if he doesn't deal with with this now.
Considering the levels of unemployment being caused currently, and being projected in future years, it would be reasonable to demand that China immediately drop its import tariffs or lose MFN status. They won't. So a resonable response is to place a tariff on everything we import from China, and tax all money being transferred to China. At the same time, the income tax on American workers and businesses could be reduced (zero would be the Constitutionally correct amount) as the tariffs and duties replace the revenue.
The same could be done with India. Every dollar sent to foreign entities could be taxed. If the IRS can track the income of American workers, they can surely track and collect taxes on money going out of the country.
In any event, the revenue from income taxes will continue to decline as employment and personal income decline. If a displaced worker is lucky, he/she might be able to replace a 70k job with a 35k job, which for a family of four is almost down to the zero-tax level. And those with less income will be getting EIC (from your tax dollars, thank you).