NAFTA is Not the Main Problem written by Ralph R. Layman Sr. , March 03, 2008
Does it make any sense at all to tax American workers for working, American investors for investing and not tax imports?
NAFTA is Not the Main Problem Early in our nations history, states were not allowed to place tariffs on goods produced in another state. This was done because it was believed that free trade would benefit the entire country.
Most states then wisely instituted sales taxes and derived income from all things purchased in their state. This way the state gained income from all businesses selling things on their turf. It is somewhat like, if a neighbors cows are going to graze (sell things) on our farm, we should share in in the profits.
It is obvious that all of our income taxes and Social Security taxes paid by workers, investors and corporations have to be embedded in the prices charged for American goods and services making us less competitive. Prices of imported items and out-sourced jobs do not include these taxes. Foreign corporations are doing business and earning money in our country and are contributing little or nothing for the privilege. In a global economy, this is insanity!
Replacing our present national income tax and Social Security taxes with a progressive national sales tax would have many benefits. It would:
Only tax things over the poverty level Tax imports too, instead of only American labor and investment Also tax things made with outsourced labor Lower the cost of hiring American workers Improve our balance of payments Get more income from industries that hire few workers (i.e. Athletics, Rock Stars, Movies, CD’s. TV, drugs, etc.) Ones that earn huge profits & Pay outlandish salaries Save Social Security & Medicare Maybe fund healthcare Eliminate the IRS - audits, loopholes, forms, time & expenses Make US a partner of every business selling things in the USA Get taxes off of the top, not after questionable deductions.
All industries (foreign and domestic) would then start contributing their share of the costs of our infrastructure, from which they benefit when doing business here.
***********************
It is complicated. Supply and Demand determines the price of things. The cost (price plus tax) of things would stay about the same. On our products the tax would be added at the end instead of being embedded in the price. Importers would have to adjust their prices because customers are apt to buy fewer items when the tax is added. Consumers will think of the total cost when deciding upon a purchase.
Ralph R. Layman Sr.
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
TrackBack URI for this entry
Subscribe to this comment's feed
NAFTA is Not the Main Problem
Early in our nations history, states were not allowed to place tariffs on goods produced in another state. This was done because it was believed that free trade would benefit the entire country.
Most states then wisely instituted sales taxes and derived income from all things purchased in their state. This way the state gained income from all businesses selling things on their turf. It is somewhat like, if a neighbors cows are going to graze (sell things) on our farm, we should share in in the profits.
It is obvious that all of our income taxes and Social Security taxes paid by workers, investors and corporations have to be embedded in the prices charged for American goods and services making us less competitive. Prices of imported items and out-sourced jobs do not include these taxes. Foreign corporations are doing business and earning money in our country and are contributing little or nothing for the privilege. In a global economy, this is insanity!
Replacing our present national income tax and Social Security taxes with a progressive national sales tax would have many benefits. It would:
Only tax things over the poverty level
Tax imports too, instead of only American labor and investment
Also tax things made with outsourced labor
Lower the cost of hiring American workers
Improve our balance of payments
Get more income from industries that hire few workers
(i.e. Athletics, Rock Stars, Movies, CD’s. TV, drugs, etc.)
Ones that earn huge profits & Pay outlandish salaries
Save Social Security & Medicare
Maybe fund healthcare
Eliminate the IRS - audits, loopholes, forms, time & expenses
Make US a partner of every business selling things in the USA
Get taxes off of the top, not after questionable deductions.
All industries (foreign and domestic) would then start contributing their share of the costs of our infrastructure, from which they benefit when doing business here.
***********************
It is complicated. Supply and Demand determines the price of things.
The cost (price plus tax) of things would stay about the same. On our products the tax would be added at the end instead of being embedded in the price. Importers would have to adjust their prices because customers are apt to buy fewer items when the tax is added. Consumers will think of the total cost when deciding upon a purchase.
Ralph R. Layman Sr.
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it