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AUG. 26,
2013 -- People don't know:
1.) That
Republicans and Democrats in Congress got along together; wheeled and
dealed until the Buckley v. Valeo decision permitted unlimited
spending by rich candidates. Republicans and Democrats started raising
money against each other to defend against rich candidates buying the
office. Partisanship set in. Congress relied more and more on lobbyists
for money. Now the lobbyists control government. The lobbyists wheel and
deal, fix the vote, long before the Roll is called and in fact tell the
Speaker or Leader when to call the Roll. The President and Congress tried
to control the gun - control vote but the lobbyists won - now control
immigration. 2.) The
Congress has tried for 35 years to correct this with McCain-Feingold,
public finance, etc. but now the Supreme Court has given unlimited spending
to corporations. The only way to correct this is a Constitutional Amendment:
"The Congress is empowered to limit or control spending in federal
elections." Congress can then do what President Nixon signed into
law in 1973 -- limit spending to so much per registered voter. This will
limit the lobbyists, have Congress back in control of the government and
break gridlock. 3.) That
to create jobs the government must make it profitable for industry to
invest and produce. Industry will invest in a nation that's fiscally sound,
has fair taxes and protects industry's investment. 4.) That
President Bush and Obama have failed to protect industry's investment
by enforcing trade laws against predatory practices. As a result Corporate
America offshores its innovation, research, technology, production and
jobs to such an extent that the U.S. lost one third of its manufacture
between 2001 and 2010. 5.) That
the recession has been over for four years and the reason the economy
hasn't bounced back is that we are offshoring the economy as fast as it's
being strengthened. 6.) That
Wall Street, the big banks and Corporate America want to keep the China
profits flowing so they contribute to the President and Congress not to
disturb their offshoring; not to attract industry; to do nothing and the
President and Congress do nothing. 7.) That
while the people are disgusted with the "do nothing" President
and Congress, the President and Congress are perfectly happy campaigning,
fundraising, staying out of trouble, not voting, attending parties, traveling
the world, and engaging in the best Off Broadway show to make it look
like they are concerned. 8.) That
the 35 percent Corporate Income Tax is not rebated on exports but the
Value Added Tax is rebated. That not having a VAT is killing manufacture
in the U.S. The U.S. manufacturer has to pay the 35 percent Corporate
Tax and is levied a 17 percent VAT when his exports reach Shanghai. A
competitor can produce the same product in China, import it tax free into
the United States and put the U.S. manufacturer out of business. 9.) That
industry could easily be attracted to invest by replacing the 35 percent
Corporate Tax with a 7 percent VAT. Last year's Corporate Tax produced
$236.8 billion in revenues. A 7 percent VAT for 2012 would have produced
$922 billion. This permits balancing the budget in two years rather than
ten. The VAT is easily administered by 150 countries competing in globalization.
This cuts the Corporate Tax, not the personal income tax, so it can't
be regressive. This VAT tax cut is self-enforcing, closes all loopholes,
giving instant tax reform. This VAT tax cut frees $2 trillion in offshore
profits for Corporate America to repatriate tax free and create millions
of jobs. 10.) That President Obama realized that the majority of Congress knew more about government than he does so he campaigns to compensate. President Obama now is on a tour to campuses but he has more pressing problems than college costs. He should govern. He could have golf rounds with Congressmen and pick up votes for his policies. He could tell the people there isn't a dependable group to help in Syria so we're not going in. The Affordable Care Act is not politically affordable so let the Republicans defund it and not have to defend it next year. Like the
people, I don't know what will happen with three more years of this. 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 Making Government Work (University of South Carolina Press, 2008). © 2013, Ernest F. Hollings. All rights reserved. Contact us for republication permission. |
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