Tax break for U.S.-made goods could spur employment
To the editor:
The president’s current jobs proposal is only a temporary help to employment and long-term or permanent solutions are necessary. A change in our federal corporate income tax could be an answer. One change would be to eliminate that tax on income from all products “manufactured” in the United States, sold here or abroad, when the value of the component parts are only 25 percent or less that come from imports. That tax could then vary based on the value amounts that are from imports.
In addition we might consider a national sales tax that would exempt food, professional services and products manufactured in the United States. The exemption for products manufactured in the United State would be limited to products that contain a certain limited amount of imported components. For example, on motor vehicles manufactured in the United States, the sales tax would apply to the value of its imported components. For most products coding for register scanners could provide the taxable amount.
Technology and automation are already reducing employment. The rightful motivation of a corporation is to make the most profit for its shareholders and that often is by outsourcing to obtain lower labor costs. Our national policy should not be to weaken our nation and lower our standards of living to compete in the world on labor where costs are much lower.We must also review the other factors that promote outsourcing and work to promote education and in particular higher education. Our nation’s best days can still be ahead.
Arnold E. Kempe
Cape Coral