I keep hearing that housing got us into this mess. This is simply not true. Housing is a big part of the problem but loss of our industrial/manufacturing base is the real core of our economic woes.
Think about it. Why did the government create the housing bubble? Because we can’t import houses from Asia and drop them onto lots here in the U.S. We cannot say the same for manufacturing which has, in fact, moved largely away from our lands. Why? Because we have an unfriendly business environment that is just too costly to do business in.
High (unionized) labor costs, over-regulation, over-taxations … All of this adds to the cost of goods sold at every level of the supply chain from raw materials extraction through component building, finished goods assembly, and right to the retail shelf. We have lost jobs and prosperity due to this unfriendly environment. So, what does the government do? It props up sectors that can’t be shipped overseas… housing and the financial sectors.
The FairTax fixes the over-taxation aspect of our economic woes. The FairTax completely eliminates Corporate Taxes and Payroll Taxes which instantly reduces the price-point to profit at every level of the supply chain. U.S.-made products will arrive on retail shelves completely untaxed – like imported competition does today. The FairTax adds a 23% national retail sales tax to domestically and foreign goods equally which makes our products more competitive.
A healthy manufacturing/industrial base is the basis for everything else - housing, medical, technology , finance, etc. Lack of a healthy manufacturing/industrial base grows our trade imbalance and limits our national and economic security.
Again, the FairTax is a big part of the solution.