Many companies have moved their production (& jobs) out of the US this avoiding US taxes, except small tariffs. Companies that continue to produce their products in the US pay heavy Corporate Taxes and face a host of regulations. Granted there are tax "Loop Holes" which are actually Incentives to encourage behavior that stimulates growth.
Taxes are a necessary evil, and most people think Others should pay more, but not them. This has led the US Citizens and anti-business (anti-jobs) politicians to increase taxes on Corporations, who don't get to vote, except with their campaign contributions which are essentially just legal bribes. In the process, we have created an environment that drives businesses/jobs to other countries.
By lowering US Corporate taxes we make them more competitive, able to sell more US products and services, creating more US jobs. More US jobs translate to more income and spending and more tax revenue. This is called growing your way out of debt, but it takes about 8 years before the impact of this circular economic growth cycle is fully realized.
A BAT tax:
- Lowers Corporate taxes making US products & services more competitive
- Encourages US companies to buy their raw materials from US producers creating more demand for US made products and more US jobs
- Encourages exporting products creating a favorable trade balance. Note the US gets over 1 Billion Dollars Per Day Poorer from importing more than we export.
What about the fact that raising tariffs only costs the consumers more? The answer is that the consumer pays for it both ways. One way they have jobs and the other way, people over sea's have the jobs.
At the same time, adding or increasing the import duty (tariff) taxes foreign businesses and makes foreign made products less competitive against US Made products.
So the answer to economic growth is tax foreign business more and US companies less.
Comments? Questions? Post comments below.
For additional Prepper information, see our:
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Free Trade vs Duties
US Poverty from a global perspective