March 27, 2009

Where America went wrong fiscally

Please forgive this long read, but it is hard to condense so it is in two parts:
 
1.  Why car companies are struggling 
 
2.  Where did we go wrong:
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1.  Why car companies are struggling:
 
Remember a decade ago or more, when General Motors took the profits from North America and put them into Europe?  Then about ten years later  they declared the North American branch as failing, to not have enough cashflow?  Why would they make such a move?  Could it be the high corporate production  tax in this Nation? 
 
How does any company compete with a foreign market when saddled with a Federal Corporate Tax of 35%, State Taxes, in Michigan 22%, while the imports come duty free and no tax overhead?  If Congress would simply stop playing possum with our lives and get some backbone, they could pass the Fair Tax Plan www.fairtax.org .  That would remove from the cost of the product not only the corporate Federal and State taxes, but a host of expense tax, including the matching social security and payroll.  The fair tax would put an fair equal tax distribution on all imports of 23%.
 
 The Domestic car would be a wash in cost to the buyer in America and would be much cheaper to export.  The cost of a car would drop about 22% and that would make the foreign market have to compete at the lower price.  Sure the American will have to pay taxes as they are right now at about the 22% hidden tax in products bought from local production and from foreign production. 
 
What would be the result of reducing domestic product price 22% and then tax all products foreign and domestic 23%? 
 
We need the consumption tax yesterday, the day that they made policy of Free Trade.  This is why our manufacturing left us to go overseas so that corporations could move there and create two markets, overseas and imports to America.  Time is up.  America is done bailing out the rest of the world in creating wealth.  It is time we bring home our jobs and boost our still surviving ones. 
 
Yes, a loan to the Auto Industry makes sense.  The giving away of money by the Feds to money tycoons doesn't.  What is wrong with our Nations Leaders.  Maybe we should vote all incumbents out who don't support the Fair Tax.  The car industry will retool and will help us rid ourselves of foreign energy which will in turn revive our economy also.
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2.  Where did we go wrong:
 
Before W.W.II this Nation was a closed market to imports.  The framers of our current tax structure did so under the Americans consuming only domestic manufacturing, I imagine using the production tax system as a convenience since the bookwork was already in place and under management control.  Then we opened our trade to Japan, making for free trade.  This gave the American consumer a boost to their cashflow, making for more spending in other areas and those we lost a few jobs, the increased cashflow produced many more jobs. 
 
President Reagan then introduced free trade to the world and opened our border to duty free import.  NO thought was given to the production tax structure in place and the new surge of cheap goods made for even greater prosperity to the American consumer, while again eliminating some jobs, but at the same time we had new technology introducing new avenues of employment, thus the excise production tax on domestic production had minimal effect.  During the period after, companies were being cannibalized for short term profit as their competition from imports was cutting into the profit margin and causing little advantage to stay in business.  These companies were closed, jobs being eliminated, as the scavenger Companies bought them up and sold them for parts or took the parts overseas to open up manufacturing to import and feed the open accounts of buyers of the closed companies products, in a duty free, production tax free advantage and at a high markup profit. 
 
The slow demise of manufacturing in America has grown and the need of social programs from the Federal Government to prop up the American dream continued to grow, expanding deficit spending and hidden inflation.  This perpetuated the domestic excise production tax, furthering the handicap of American manufacturing.  The need for additional income into Families also grew, demanding more then two spouses could produce to keep up with the standard of living and regulations and license fees, insurance costs, to a point where a majority of Americans are now in a fiscal struggle living paycheck to paycheck, if working.  Jobs have become hard to find, many being entry level service jobs without any ability to advance or receive adequate wage.  Jobs are at a premium, even with a low reported unemployment level, which does not report and hides many who have slipped from the employment rolls due to years of job seeking frustration, especially in the urban and rural areas. 
 
Now we find ourselves being tempted into becoming what we fought for years with our own blood to push back, fascism, Communism and the Tyranny of Government, with the promise of fiscal security.  The American Dream is on life support in need of a true free market, one of which fair trade exists.  The cost advantage of foreign imports over domestic by continuing with a production tax is about 22%, the amount of hidden tax in domestic goods.
 
Time is of essence, that this very hour, this Nation is about to fall.  The World Government proponents are about to make their final push for world dominance through one world currency.  The Marxist of the world have moved into leadership positions in coalition with the One World Shadow known as RHINOs, the pawns of the One World Government advocates.  The old media has joined or is owned by both powers and is a major instrument of this Coalition and is making for a unique threat to the U.S. Constitution. 
 
The only way to prevent the above from fulfilling their mission to dominate this Nation and the World is to offer change to the American worker and Family a grand demand for their employment, jobs, jobs, jobs.  Only then will the chain of despair be broken.  The Conservative Movement must center all it's will on fixing the failing tax and trade structure of this Nation.  We must lay down the plank of the Fair Tax Plan  WWW.fairtax.org  to the Democrat and Republican Grassroots and educate them across into a Party totally centered on the character and values of the Founding Fathers, presiding under the Constitution as written through the demand on the Judiciary to be of good behavior as instructed in the Constitution and defined by Alexander Hamilton in the Federalist #78 Document.  http://www.constitution.org/fed/federa78.htm
 
The Fair Tax is the Salvation of the United States of America and it's Constitution of liberty and Freedom of We the People.  Make it so.
 

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