Hollings, Sen. Fritz, “Shameful Conduct,” HuffingtonPost.com, 10/05/11

“I don’t know what the demonstrators want Wall Street to do, open earlier; cut the price of stocks? Demonstrators mistake result for cause. Business doesn’t create the business climate or economy. Government does. Business takes advantage of the business climate that the U.S. government has developed. Capitalism has a tendency to monopolize.

That’s why government institutes anti-trust laws and restrictions to keep the market open. But an open market doesn’t mean a free market. In globalization, with China setting the competition, the market is definitely not free. Corporate America shouts “free trade” but creates jobs and develops the most closed market in China…”

“…The first order for government is to take the tax benefit for corporate America to off-shore jobs and give it to corporate America to on-shore jobs — cancel the corporate tax and replace it with a 6 percent value added tax. Last year’s corporate tax produced $194.1 billion, whereas a 6 percent VAT for 2010 produces $700 billion in revenues. Exemptions for the poor leaves billions to pay down the debt.

With no loopholes, a VAT produces instant tax reform, which puts the tax lobbyists out of business. The VAT replacement releases $1.2 trillion in off-shore profits for corporate America to create jobs in the United States. The VAT is like a sales tax, but not on the sales price — only on the value added or seller’s mark-up…”

“…Wall Street, the big banks, and corporate America are happy for Congress to do nothing. They oppose the enforcement of trade laws; oppose a VAT because it increases the cost of imports, and oppose the repeal of the subsidy to off-shore jobs. Wall Street, the big banks, and corporate America are the biggest contributors to the president and Congress. So the president refuses to enforce our trade laws. The president and Congress oppose the VAT solution even though they are for tax cuts; and they oppose repeal of the subsidy to off-shore profits.

Replacing the corporate tax with a 6 percent VAT would make it profitable for corporate America to produce and create jobs in the United States…”

http://www.huffingtonpost.com/sen-ernest-frederick-hollings/value-added-tax_b_996626.html