I wish that our candidates for Congress in this important election year of 2010 would address the issue of Jobs, which is the Number One concern of most Americans. We have lost millions of well-paying jobs to countries overseas. What's the solution?
I believe it is essential that our government face up to the discrimination against America that is practiced by all foreign countries. Every developed nation in the world (except the United States) uses what is called a Value Added Tax (a VAT) that is imposed at the border. The practice of what is called free trade was supposed to eliminate border taxes, called tariffs. But when the foreign countries eliminated or reduced their tariffs, they just imposed a VAT of about the same level. The VAT functions like a tariff in discriminating against American products by making them more costly for foreigners to import.
The VAT is a double-edged sword because when goods manufactured in foreign countries are exported to the United States, that foreign country rebates the domestic taxes that the manufacturer has paid to his government. That is why foreign companies can sell products cheaper than we can. As you know, American manufacturers pay high corporation taxes, and our government certainly does not rebate those taxes. So American goods sold in foreign countries have to sell at higher prices.
Foreign VATs disadvantage U.S. producers of goods and services by nearly $500 billion a year. Congress has tried to remedy this anti-American discrimination, but those attempts have been overturned by the World Trade Organization, which usually rules against the United States, and from which there is no appeal. Several bills have been introduced in Congress to deal with this tremendous problem, but we need to do more education of our Representatives in Washington in order to get action.
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