Hollings, (fmr.) Sen. Fritz, “Wake Up, America,” Huffington Post, 12/20/10

“The best example of a President sleep-walking through the trade war is his hectoring CEOs to invest in production and jobs in-country. If you were a CEO, would you invest in-country? The first thing the banker asks is: “Can you meet the China price?” If not, even though your investment succeeds, cheaper imports from China of the same article will soon put you out of business and the loan goes bad. The harsh truth is that in globalization it is difficult to produce for a profit in the United States. In globalization only the government can make it profitable to manufacture and protect Corporate America’s investment.

In globalization, the task is for the President and Congress to make it profitable to produce in the United States. Congress can make it profitable and jump-start the economy by eliminating the corporate income tax and replacing it with a 5% value added tax. The corporate tax estimate for 2010 is $156.7 billion in revenues. A 5% VAT reaps $600 billion. Exemptions for the low income for food, health and housing still leaves $350 billion to start paying down the debt. Since the VAT is rebated on export, it promotes exports. Canceling the corporate tax releases $1 trillion in off-shore profits that can be repatriated tax free to invest in creating jobs in the United States.”

http://www.huffingtonpost.com/sen-ernest-frederick-hollings/wake-up-america_b_799214.html