What's the matter with America?
By ERNEST F. HOLLINGS, former U. S. senator
2010 -- Plagiarizing yesterday's The Wall Street Journal (10/19/10), "What's
the matter with America?" and listening to Wolf Blitzer's lamenting
the fact that the federal government and state governments were headed
in two different directions on marijuana, immigration, and health care,
Wolf Blitzer avoids the answer - jobs!
State governors jump through hoops trying to attract jobs. South Carolina just packaged $900 million of tax deferrals to get Boeing to produce the Dreamliner in Charleston, and the President and Congress do everything possible to get rid of jobs. The Congress could easily lower taxes and eliminate the incentive to off-shore jobs by substituting a 5% VAT for the corporate income tax. The corporate income tax burden averages 27% on the cost of production, which is immediately lowered to 5%, and since the VAT is rebated on exports, gives President Obama's export initiative a real boost. And since the corporate income tax is estimated for 2010 at $156.7 billion, and the 5% VAT brings in $600 million in revenues, that's $443.3 billion left over to pay down the debt.
could cut out his whining about the terrible economy he inherited, which
was made terrible by the eight-year refusal of President Bush to enforce
trade laws, and enforce the trade laws. We've lost one-third of our manufacture
and jobs in the last ten years. President Obama has the country looking
like a helpless giant in globalization as China calls the shots. And the
free press and TV pundits follow suit. In Sunday's New York Times Magazine(10/17/10)
there appears a sixteen page article entitled "What does he do now?"
by Peter Baker that suggests everything except the United States competing
in globalization; the United States engaging in the trade war; the United
States attempting to stop the off-shoring of research, technology, development,
production and jobs; of President Obama enforcing the nation's trade laws;
of the government in Washington making it profitable for Corporate America
to produce domestically.
the matter with America? The most competitive nation in the world is not
competing. The most productive nation in the world is not producing. Tell
Summers to take Axelrod with him so that the President can come in off
the campaign trail and govern.
Senator Hollings of South Carolina served 38 years in the United States Senate, and for many years was Chairman of the Commerce, Space, Science & Transportation Committee. He is the author of the recently published book, Making Government Work (University of South Carolina Press, 2008).
© 2010, Ernest F. Hollings. All rights reserved. Contact us for republication permission.
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