From our friends at Economy in Crisis…
We must bring jobs back to the United States. The way to do this is by implementing tax reform. There are solutions available for our government to relieve the suffering of our economy. The most beneficial of these solutions would be the implementation of the Value-Added Tax (VAT).
If the United States were to implement a VAT of our own, we could:
- Reduce our income tax
- Boost U.S. competitiveness and growth
- Decrease our deficits
- Regain the jobs that have been lost to other countries who have used the VAT as a tariff against us
- Subsidize our exports and negate the foreign exporter’s advantage
Today the VAT is used by nearly every other nation in the world, giving them an economic advantage and effectively rendering the United States uncompetitive.
Because the United States does not employ a VAT of our own, we are stuck between a rock and a hard place where international trade is concerned. Many of our trading partners employ the VAT, making it more expensive for U.S. companies to export their goods and subsidizing foreign exporters for their goods entering the United States. In fact, an average of 94 percent of all U.S. exports and imports are subject to a foreign VAT annually. This only further contributes to our massive trade deficits and the outsourcing of U.S. businesses and jobs.
While implementing a VAT of our own would help grow jobs and reduce our budget deficits, it would also cut income taxes and help to alleviate the tax burdens on average Americans.
The message is clear. In order for the U.S. to become more competitive in the global market, we must implement our own value-added tax. Until our leaders act on this critical issue, U.S. businesses and taxpayers will continue to suffer