MAY 20, 2013 -- China's Central Committee can best be called a conspiracy to control its people and take over the world economically. This conspiracy controls China's government, market, production, jobs, currency, trade, communications, environment, health, domestic and foreign policy.
its production and, to sell in China, you must produce in China and surrender
your technology to China. China devalues its currency, controls imports
and exports, steals research, ignores WTO rulings and engages in every
predatory practice imaginable.
The Economist Special Report on Offshoring (1/25/13) cites a Harvard Business School survey that finds: "Many firms are still deciding against basing activities in America" and reasons that "America's government is not making the country's business environment attractive enough for companies to want to come back." Corporate America is forced to offshore. Instead of calling on our government to protect the economy, the U.S. Council on Foreign Relations, the Trilateral Commission and the U.S. Chamber of Commerce join China's conspiracy - calling for free trade and against protectionism. Wall Street, the big banks and the economists for the Universities and Corporate America join in the chorus.
The worst part of China's conspiracy is the President and Congress. Necessarily political jobs depend upon contributions; but the primary duty of the President and Congress is not for contributions but to do a good job for the country.
The United States, as a world leader, has to have a strong economy and the President and Congress are charged with developing and maintaining a strong economy. The President and Congress put on a big charade, acting like they are for jobs with aid for research, development, skills, policeman, firemen and teachers, etc. The President and Congress could make "the country's business environment attractive" by eliminating the 35 percent Corporate Income Tax and replacing it with a 7 percent Value Added Tax. This VAT tax cut immediately releases $2 trillion in offshore profits for Corporate America to repatriate tax free, invest in the United States, create millions of jobs and start rebuilding the economy. Moreover, this VAT tax cut produces billions to pay down the debt in two years rather than ten.
One hundred fifty countries compete in globalization with a VAT that's rebated on exports. The Corporate Tax is not rebated. An entrepreneur can develop a business, be making a profit, but has to pay the 35 percent Corporate Tax and is levied a 17 percent VAT when his exports reach China. A competitor can produce the same product in China, import it tax free into the U.S. and put the entrepreneur out of business. This 52 percent difference is killing manufacture in the United States. Moreover, the VAT supports foreign investment in the U.S; to unfairly compete with U.S. production.
than going to Texas and Maryland and talk "jobs" President Obama
can create jobs by enforcing our trade laws. If President Bush and Obama
had enforced the Defense Production Act of 1950, the Detroit bailout would
not have been necessary. We wouldn't be begging Russia for helicopters
for Afghanistan. If President Obama would protect steel, motor vehicles,
computers and machine tools like President Reagan in 1984, we could have
a strong economy. President Obama has the authority to act against China's
devaluing its currency but he refuses to act.
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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