January 9: The case for a border adjustable tax system

If America’s competitors were intentionally trying to design a tax system to destroy the American economy, they probably couldn’t come up with a dumber tax system than the way the United States currently taxes our own businesses.

To fully appreciate the stupidity of the American corporate tax, consider this simple example:

If you are an American company making cars in Michigan, you have to pay a 35 percent profits tax on the car made here and then if the car is sold across the border to Mexico, the Mexicans slap a 16 percent value added tax on the car, so it is taxed on both sides of the border. Almost all countries tax goods produced in the United States this way.

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