Solution to joblessness and budget deficit.

[JDPriestly]

Trigger import and use taxes on outsourced services with a reference to the United State's unemployment level and to the trade deficit level.

We all know that the percentage of unemployed in the U.S. is too high. We also know that our tax revenues are not high enough to cover the necessary expenses of our government.

Our unemployment rates are due to the fact that job-outsourcing and service- and product-importation from overseas, especially third world countries like China and India have eliminated a lot of jobs here.

Our budget deficits (at state and federal levels) are due to the fact that most of our tax revenue is either from income, sales or property taxes. Income tax revenues are low as are taxes based on property values and retail sales. That is because so many Americans have no jobs and therefore no income to tax, and because those who are still working are earning less in adjusted terms than our parents did and therefore have less income to tax.

American workers have to compete with third world workers for jobs and pay rates. Thanks in part to the relative complexity of our society and the fact that our currency, the dollar, is the primary currency of trade and overvalued in the international marketplace, our paychecks look a lot bigger than those of people living in some other countries. But if you look at our standard of living, you realize that, overall, it is quickly declining.

Clearly, to raise our standard living to the level it was in earlier times, to increase the amount of tax revenue to federal, state and local governments, we need to increase employment. This we cannot do unless we draw jobs back into our economy from the third world economy.

To do this, I propose that we should pass a law that places an import tax on goods and a use tax on services "imported" for sale or commercial use in the United States that is triggered either when our unemployment rate reaches a certain percentage of the American population aged below the age at which we become eligible for full Social Security benefits or when our trade deficit rises to a certain level as measured in terms of our GNP. The tax would be triggered either on a quarterly or annual basis depending on when the unemployment and trade deficit information is made available. Imports would simply suddenly become subject to taxes. And, yes, with this, we could require companies to report to to our government the amount of service work they are hiring overseas. Every time Citibank sends financial information for processing to India, it would have to pay a tax to get it back -- if our unemployment rate is high or if our trade deficit is high.

We would have to renegotiate our trade agreements, but the agreements we have at this time have so harmed our economy and the working people of America, that I think a majority of Americans would back this idea.

Turn about is fair play. Why should we allow cheap imports into America, cheap imports that leave us jobless and bankrupt? I just don't see it.

We have tried "free trade," and it didn't work.

Don't you think Tea-Baggers (the ordinary ones, not the libertarian fanatics) would support this? This is just my inspiration for the day. What do you think? I'd like some feedback on this.

[DJ13]

1. Don't you think Tea-Baggers would support this?

Im not sure since someone here has already unrec'ed your post.

:crazy:


I like it, K&R!

[JDPriestly]

2. I would appreciate it if the person who unrec'd this or who disagrees

with me would simply explain why. That would be helpful. I would also like to hear their solution for dealing with the unemployment and budget deficit problems. I'm interested in hearing different points of view on this.

What is wrong with my idea?