In response to [consultant Stephen Hudson's Dec. 8, Page 6 Perspective, “Antidote for manufacturers”], there is another solution — one that would truly level the playing field once and for all. This solution would come from our Legislature and with the stroke of a pen simplify our lives.
First we must look at why the playing field is tilted. Domestic manufacturers and employees pay taxes to the U.S. government, while our foreign competitors do not. That means that all products made in the United States carry a financial burden, while importers are free to sell their products here without any contribution.
Tariffs target only imports and bring with them the wrath of the World Trade Organization or, worse, a global trade war. We need a solution that fairly distributes our governmental needs and is applied uniformly across America.
A consumption tax coupled with the elimination of income taxes would stop the erosion of our manufacturing sector and launch our economy into the 21st century. A consumption tax applied to all products equally, regardless of origin, would: level the playing field; neutralize the import advantage; save manufacturing and many other industries' jobs; eliminate the complexities of paying income taxes and filing returns; and add 5 percent to our economy by simplifying tax compliance. It also could be indexed for below-poverty incomes, and encourage savings.
Switching to a consumption tax will save America!
Plastics Design and Manufacturing
Note: If you are interested in learning more please visit www.fairtax.org.