Can you explain why globalist tax theory fails, but globalist trade theory holds?
Can you refute the teachings of Thomas Sowell?
We know that you are proficient in posting free trade html dogma,
Actually I rarely take a positon on free trade per-se, my issue is taxation and how best to release domestic business from the constraints that our current tax system imposes on manufacturing and all aspects of our commercial infra-structure.
Can you explain why globalist tax theory fails, but globalist trade theory holds?
Wrong question. The issue is more of one on how a retail sales tax only system operates to counter trade disadvantages. Productivity in this country far outways labor plus transport costs of goods in international trade and is not actually the dominant factor in manufacturing leaving our shores. Tax and regulatory conditions imposed on our manufacturing infr-structure account for alot more of the manufacturing fleeing our shores.
Under an NRST, that removes taxation and costs associated with business taxes from domestic manufacturers, our exports become more competitive. A retail only tax levied on all goods domestic as well as imports assures equalization of tax treatment of priducts while retaining the advantages of strong competition to keep corportations on the edge of the envelope in advancing technology and quality of goods at lowest cost to the consumer.
A tariff on imports merely provides an environment that encourages our own industry to slack off in competitive and techological advances in productivity while retarding the advantages of competition in expanding markets of international trade. A tariff does nothing to remove tax or rgulatory burdens on our domestic industry depressing the our domestic economy and industrial capability which is causing business to move their operations off shore.
With an NRST only tax system, we relieve domestic manufacturing from the heavy overhead costs imposed on them, while at the same time assuring that foreign imports are loaded with at least the same tax burden as our own domestic products.
As far as tariffs go, there is nothing at all to prevent us from imposing selective tariffs as well as NRST on imports in specific international trade situations where that would be of value. In the mean time why should we burden what manufacturing we have or treat those trade partners that are valuable to us any different at the retail level than we treat our domestic goods?
Furthermore why should we not create a manufacturing taxhaven to attract foreign manufactures to relocate there companies in the United States to encourage a reversal of the outflow of manufacturing from this country?