THE BLOG
05/03/2011 12:54 pm ET | Updated Jul 03, 2011

Quit Planning. Do It, Please

SENT TO "THE GANG OF SIX" SENATORS, COBURN, CHAMBLISS, CRAPO, CONRAD, DURBIN & WARNER:

We all want to cut taxes. Globalization is nothing more than production looking for a cheaper country to produce. We can cut taxes and stop the hemorrhage of the U.S. off-shoring its production and jobs by eliminating the corporate income tax and replacing it with a 5% value added tax (VAT). One hundred thirty-six countries in globalization have a VAT that is rebated on export. This will immediately boost exports and create jobs. Not only that, it amounts to a tax cut. The average corporate tax is 23% compared to a 5% VAT. The 2010 corporate tax brought in $191.4 billion, whereas a 5% VAT brings in $583 billion. Exemptions of $83 billion for the low income leaves $300 billion to start paying down the debt. With the $100 billion in spending cuts that the "Gang of Six" agrees to, this is a $400 billion cut in the deficit. This makes it profitable for Corporate America to produce in America. It frees $1 trillion in off-shore profits that Corporate America can repatriate and produce and create jobs.