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To: maceng2 who wrote (1493)	12/17/2002 10:59:12 PM
From: craig crawford	Respond to of 1643

>> I've been battered around the ears for being too dumb to some of the topics you brought up, but .. though a slow learner, I can learn << i'm not trying to "teach" you as if you are dumb or something. i may come across as condescending however because i am firmly rooted in my beliefs and i will argue them vigorously. i surely come across as having my mind made up, which means i'm not really open to opposing points of view. it's not that i'm not receptive to opposing points of view, i just haven't come across any yet that would change my mind, nor do i anticipate any. it's not even a close call in my estimation. i also have a chip on my shoulder, because i think the media and academia has done a snow job on many americans by not properly informing them on the issues related to trade. as with everything else, the media clearly has an agenda, and the mainstream media is probably around 90%+ in favor of free trade, for obvious reasons. Opinion: Not much is fair about free trade Tax consequences are far less for foreign countries tradealert.org Last Updated: Dec. 8, 2002 There is a big difference between "fair trade" and "free trade." "Free trade" means that China and others pay substantially less in taxes to do business in the United States than American companies. It means they are free to use the strength of the dollar to close our manufacturing plants and put millions of workers out of work. It means they are free to ignore patent and trademark laws and protections. Free trade means that China and others are free to ignore the environment and dump toxins into the water and air, which soon will affect our air and weather and eventually our coasts. And free trade means foreign competitors are free to disregard trade agreements by closing their countries to U.S. products. "Fair trade," on the other hand, would equalize the tax burdens of our domestic producers and competing imports. It would price the dollar at its fair trade value. It would enforce trademark, patent and environmental laws, and enforce trade agreements. Fair trade would reward those companies that innovate, cut costs and invest in productivity. Fair trade would achieve all the goals that free trade advocates espouse. Until we ensure that "free trade" is also "fair trade," we are putting our economic future in peril. Change needed soon Structural changes are happening to our economy that will be impossible to reverse unless something is done soon. Our manufacturing is fleeing this country and relocating overseas. In the last two years, 2 million manufacturing jobs were lost in this country leading to 6 million lost jobs in the service sector. Most startling is how fast this erosion is accelerating. The World Wide Web, our open borders and transportation advances around the world have made it easy for U.S. manufacturers to outsource overseas. It is cheaper to cut costs by importing than by investing in manufacturing improvements at home. Economists cry foul at the word tariff. But without adequate tariffs, our tax system discriminates against our domestic producers. In 2000, I calculated the amount of taxes my employer and our suppliers paid in the form of FICA (employer and employee), federal and state withholding, and corporate income taxes. These taxes totaled 30% of our sales. Thus, 30% of every sales dollar went to our federal and state governments in the form of taxes. If the same tool were imported from China, our federal government collected only 3.1% of the sale in the form of a tariff. It is ludicrous that an imported tool only contributes 3.1% in taxes for the protection of our legal system and commercial codes, and the privilege of using our economic system, while our domestic producers pay around 30%. Tariffs needed In 2001, my employer's sales fell by 25% because of the increased competition from imports. As a result, related tax payments fell by $1.2 million. What will happen to tax collections when we as a nation manufacture nothing? We will need tariffs to replace our lost manufacturing tax collections. Why not use tariffs now to preserve our manufacturing base? Perhaps tariffs would be more palatable if they were referred to as a user fee for our great economic, legal and social institutions. Is it good for America to have trade deficits exceeding $30 billion every month? Can we continue to have a $10 billion monthly trade deficit with China without sacrificing our economic future? If we aren't working and producing, we cannot remain the most powerful nation in the world. We need fair trade. We can save the U.S. economy with the following fair trade steps: Lower the dollar before it starts a free-fall that we will be powerless to stop. Stop domestic discrimination. Tax imports the same as our own manufacturers are taxed. Encourage U.S. manufacturers to upgrade productivity by creating an Investment Tax Credit of 15% to 25% on domestically produced tooling and machinery. Enforce the trade agreements now, not the five-year moratorium that China has to comply with World Trade Organization provisions. Enforce copyright and trademark protections in violators' countries by restricting their exports. Use trade to make importers clean up their act. They are dumping toxins in the air and water without any regard to the environment. As fair trade continues to be repressed and free-but-not-fair-trade is allowed to decimate our manufacturing, our wages will begin to equalize with the rest of the world by descending to the world's standard of living. This will affect all Americans, no matter if their jobs are in manufacturing, service or government.