It is Time to Level the Playing Field with a Value-Added Tax (VAT)
The U.S. desperately needs its own domestic value-added tax (VAT) to place us on a level playing field with other countries instead of being competitively disadvantaged without one. We have no tariffs and no defenses against their protective mercantilistic trading practices. Nations we ship to protect their companies by assuring our exports don’t undercut their competitive conditions, while these same nations can ship anything to our open borders free of charge and free of inspections.
Their VAT is instrumental in putting thousands of our companies out of business. Our underfunded FDA only inspects a small fraction of the goods entering the U.S. We cannot afford to fund the FDA with our ever-increasing debt and lack of tariffs and taxes.
With a VAT, we can lower our own income tax and still take in more revenue, increase production for exports and our own consumption, cut our balance of trade deficit and cut our budget deficit.
Other nations hold U.S. products for numerous intensive inspections, making it harder to get what little goods we still make into the hands of foreign consumers. Other nations’ industries are subsidized with American money, yet we do little to subsidize our own companies.
A national VAT would allow the U.S. to cut the income tax, putting more money back into the pockets of Americans, which they could then put back into the economy. The VAT would also level the playing field with our competitor nations. Currently, the VAT is one-sided; it only benefits other countries as American dollars subsidize foreign industries. If we collected a VAT, the money could be used to rebuild America, creating jobs in our time of need.
When we step back and note the dramatic and rapid descent of our economy, we see our country has fallen from being a superpower and is now a country that is:
- heavily in debt
- forced to operate with a destroyed industrial infrastructure
- liquidating thousands of our best companies
- rendered uncompetitive with most other trading countries
- forced to live on imports to function and even exist
We must ask ourselves, why are our leaders not doing anything to stop it? Are we blind?
To a great extent, it is clear that our leaders must have been bought off by lobbyists who work against this country’s greater good. They are working more for those who fund their campaigns for re-election than for the votes that put them in office. Certainly any well-intended elected official whose interests are to better our country’s conditions can see the folly of our ways. Surely they would want to stop our destructive plunge off an economic cliff.
We must ask the question, who are our elected leaders working for? Given our current economic position, it is obvious our representatives are not working for the best interest of our country.
When our fate and future rests in the hands of our own elected officials – who may be doing very detrimental things to our economy and who may not be trained or qualified for the job – we need to question our leaders’ actions. While it may sound like a bold proposal, we should ask them whose best interest are they working for.
Contact your Congressperson and let them know we need tax reform that includes a value-added tax so America can start to become competitive once again!Email This Post