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Unfortunately the 22% in taxes plus the difference in shipping and distribution is quickly overcome by the order of magnitude difference in wage rates between here and overseas. If we can make a widgit for $10, it can be made overseas for $1. If the taxes on that widgit and the cost to ship it are less than $9, it will be made overseas. If this country truly wants to compete, manufacturing laborers won't be making $30/hour they'll be making $10/hour and probably much less.

All of those economic issues work their way through the market system on a decision by decision. The bottom line is that Americans cannot be better off when investment capital is being spent to build production plants overseas rather than here. Efficiency in production is important, and labor costs are an important element. But a burdensome tax system unfavorable to the investment of capital is presently the major element that determines the building of plants overseas. That is reflected by a study performed about five years ago and presented to the Chairman of the Committee on Ways and Means at the time showing a dramatic move of new investment capital to the U. S. under the Fair Tax. Take a look at this paper on the subject:

http://www.fairtax.org/pdfs/manufacturing.pdf