The notion that the EU has special rights in profit may bring on a trade war as the current rift in French-America corporte joint ventures is already hurt due to the War on Terrorism - e.g., other countries could see the US wean herself off of future investment in unfriendy markets and slowly deprive these countries of badly needed research and development. By shutting out American investment and job creation, the favorable twin towers of an American presence in a countries economy and a political vested interest in this market remaing viable will be lost making it much more likely that America can and will turn a blind eye to former economic partners who have become cut throat competitiors feeling vindicated in letting them suffer. The UN, the EU, Brazil and other countries have for too long taken for granted the open sea lanes and military presence on land, air and space by which the world's trade is protected under American military presence. If a day comes in which America withdraws from an active protector of all trade to the role of protecting our own economic activity will be the day that all nations find themselves indirectly taxed and eventually isolated.
"...the right of governments to use public funds to support local industry and national development is a core element of sovereignty...
"What is lacking among liberal trade theorists is the realization that commerce runs on the basis of competition, not harmony. The great error that has dogged liberalism is the belief that peaceful trade can replace international strife. Instead, trade has always been a major component of strife. Statesmen know that where factories, research labs, jobs, capital, and other resources are located is where wealth and power will also develop. And as a society becomes stronger, it can better shape events so as to bring more security and prosperity to its people."
~ William R. Hawkins, (The Cancun Trade Negotiations and the Global Economic Struggle)
Transnational corporate apologists, such as Daniel J. Mitchell, seek to undermine U.S. sovereign right to enact policies that are beneficial to our own citizenry. They believe that it is "unfair" that we act in our own economic self-interest. That is why the advantage we enjoy by not having a national sales tax must be negated by imposing such a consumption oppressive method of taxation.
No thanks. We'd be much better off enabling reduction of our corporate income tax by imposing a relatively low (10~15%), flat-rate "revenue tariff" on ALL imported goods. As James Madison noted during debate of The First Federal Revenue Law, "A single, uniform tariff... was consistent with the principles of free trade" and is the method of taxation that is least oppressive of our own citizenry.
Furthermore, while a "revenue tariff" lacks the objectionable characteristics of protectionist targetted tariffs that are advocated by special interests they DO offer a margin of comensation to domestic industries that are adversely affected economicly by bureacratic regulation rather than taxation. As an apologist for transantional corporations, Daniel J. Mitchell ignores this factor, preferring "solutions" that undermine our domestic industries (and national sovereignty) with international resources.