Tax changes needed to level playing field
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
Economy headed for emergency situation
It has been said that the manufacturing sector is a small percentage of the working American economy and that it is an affordable expense to have this industry perish as collateral damage to the new world trade economy. If manufacturing is so worthless, why is Asia building up its economy around it in a bloody way?
Free trade without proper, managed moderation has created a devastating chain of economic events that I believe has reached the point of no return. Now we ask ourselves, how do we stop the American and all other nations' economies from crashing?
When this country wakes up and realizes that the banking system has a full burden of bad loans, I can only imagine this will lead to a bankrupt government.
Large manufacturing firms have invested millions in China. For us now to put up barriers would probably financially destroy them, meaning huge corporate bankruptcies. That in itself would surely crash the economy.
I believe many changes need to be implemented at an emergency pace: barriers, public awareness and very serious government incentives to reopen American factories, in faith that we divert a U.S. corporate meltdown.
In closing, I am not impressed with any of the presidential candidates. Actually, I am frightened. If I don't see a potential candidate that will correct this situation, I will run for president and correct it myself.
Michael E. Mirante
M&M Tooling Inc.
Wood Dale, Ill.