Try, "we're picking up our marbles and leaving town, we got a better tax deal down the road" -- business's favorite game for 60 years.
Real wages fall, when saving and investment no long support capital investment applied to plant modernization and technological advance.
How about, "yes"? How about, "NAFTA helped manufacturers undercut their labor contracts and ship American jobs to Mexico?"
But you still haven't answered the question. And "go get your own data" is not an answer.
Tax reduction results in return of assets to US.
Until some hungry-mouth country offsets the advantage by doing something else.
Even if Chinese workers received 15% raises for 30 years, they wouldn't even come close to erasing the wage differential between China and the U.S. That's because 15% of nothing still ain't much.
China's supply of prison slave-labor and Malthusian masses of rural poor will afford Chinese businesses a wage advantage for as far as the eye can see. Or do you disagree?
The "fair tax" is nothing but a tax-free operating environment for already-rich businessmen. They'll be able easily to afford their own sales-tax bills because their businesses will leverage them against the increases. They'll be able to afford the 30% rise in the retail cost of goods and services when their incomes go up 5,000%.
Try, "we're picking up our marbles and leaving town, we got a better tax deal down the road" -- business's favorite game for 60 years.
So you do not oppose repealling all federal business income and payroll taxes, creating a tax haven in the US. That is afterall one of the effects of the FairTax act, is to end federal taxation of manufacturing, wholsale, and other levels of production upstream from retail sales.
Chairman of the House Ways and Means Committee,
Rep. Bill Archer (R-TX)
August 12, 1996
- "A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America."
Tax reduction results in return of assets to US.
U.S. Companies Bring Overseas Profits Home; May Create Thousands of Jobs
WASHINGTON (AP) -- Led by drug makers, American companies have started announcing their plans to use a temporary tax break and shift back to the United States billions of dollars in profits that have been stashed abroad.
An incentive to invest in the U.S. economy -- that's how lawmakers promoted the short-term relief that lets companies avoid as much as 85 percent of the taxes they might otherwise pay on earnings abroad.
How about, "NAFTA helped manufacturers undercut their labor contracts and ship American jobs to Mexico?"
But you still haven't answered the question. And "go get your own data" is not an answer.
So repeal NAFTA.
That certainly is not sufficient as businesses were head out long before NAFT came along. Creating a business tax climate that encourages manufacturing to stay in the US creating new jobs and rebuilding American industrial will do more for American economy than merely repealing NAFTA ever will, so do both.
Fortunately a bill before Congress to implement a tax system that will create a manufacturing and business tax haven in the US is in the pipeline in the form of HR25, the FairTax Act. Don't see much happening as regards killing NAFTA, seems to me one should be stoking the fires under what one has at hand more than pie-in-the-sky hopes to be worked toward.
Until some hungry-mouth country offsets the advantage by doing something else.
Yep they could follow the US in creating a national retail sales tax too. From the looks of it, Russia may be headed that way for the advantages that a retail sales tax system would provide against European trade competition.
MOSCOW - VAT may be abolished two years from now and be replaced with a sales tax in Russia. The news came from Arkadiy Dvorkovich, chief of the presidential administration experts department, telling reporters that officials were studying the policy switch and its consequences.
“Obviously, this would be impossible in 2006, but it could be introduced beginning in 2007,” he said, adding that a sales tax of ten to fifteen percent should be introduced along with VAT’s disappearance.
China's supply of prison slave-labor and Malthusian masses of rural poor will afford Chinese businesses a wage advantage for as far as the eye can see. Or do you disagree?
Slave labor is one of the most inefficient forms of production on the planet. Makes for lousy production. There is more to business costs than obtaining labor. The tax system being one of the big offenders. Any action we take to improve the efficiency and encourage manufacturing in the US should be done. Including taxing imports as highly as we do our own domestic production. A national retail sales tax assures exactly that, unlike the current system in which tariffs make up less than 5% of total revenues extracted from American commerce. Time to change the pardigm abit and start focusing on assure our manufacturing receives first billing instead of giving them every reason in the world to skip town looking for greener pastures.
The "fair tax" is nothing but a tax-free operating environment for already-rich businessmen.
Never new a poor man to pay a good wage. Rich busineman do.
They'll be able easily to afford their own sales-tax bills because their businesses will leverage them against the increases.
What increases. The retail sales tax is paid by the end consumer not the business, any business.
In fact all any business can do (provided they expect to stay out of bankruptcy) is pass on costs to the individual consumer in higher prices, employees in lower wages and smaller retirement benefits, and investors in lower returns on investment. All are individual Americans, all have a stake in a healthy manufacturing infra-structure that supports our standard of living.