Dear President Donald Trump
The future of the World is Independent Sovereign Nations each doing what they do best and openly and freely trading with other Nations to benefit their own People and the People of the World living in PEACE.
Tariffs are a TAX on all other TAXES and Government charges already in the PRICES of the goods and services. Tariffs inflate the cost and living and destroy the purchasing power of the workers’ net of tax take-home-pay. Tariffs are a recipe to lower the standard of living for Americans.
People around the World including myself do not buy Made in America goods because
1. They have a personal preference for the goods from other Nations.
2. Made in America is not PRICE competitive against Made in China and BRICS.
3. Germany is the best BRAND MARKETER in the World of style, performance, reliability, functionality, perception of value, and ownership identifying personal success in life.
4. Made in America products that appeal to American consumers, do not have appeal outside America.
5. Etc. etc. etc.
The greatest gift to Humans is invention and innovation. If you look around you and think back to your past and that of your parents and previous generations in terms of personal comfort, diet, health care, education, recreation, the arts, entertainment, personal development, etc. the significant invention and innovation is in transport for face to face communications and in electronics for on-line communications and data management and transfer. Today, we have the convenience for instant personal communications and data transfer but these are only beneficial if we personally have a commitment to communicate openly and honestly. In my 30s I was the MD of an ASX listed Group of Companies with a workforce of 500. This experience taught me that all success in life is an outcome of relationships which are an outcome of Open and Honest Communications. When a person openly tells lies you cease to have a relationship with them because you never know when they are telling the truth.
I see and hear you, the President of the USA, make statements that Tariffs and Reciprocal Tariffs will raise Revenue, but you know this is not the whole truth and time will tell this is not the truth, as the US Economy slides further into the abyss of DEBT.
I understand you have floated the idea of ending Federal Income Tax. The question is, how do you intend this should happen because the consequences could be disastrous? If you abolish Federal Income Tax and increase the take-home-pays of 168 million American workers, this most likely would trigger hyper inflation, high interest rates and massive defaults in debt repayments. It cannot have Made in America competitive against and replace Made in China and BRICS.
You can end EXISTING Federal and State TAXES on income, profits, and goods and services by having businesses deduct these from the PRICES of their goods and services. To fund Government businesses add to their reduced PRICES a single simple 2 cents in the dollar LIBERTY TAX to costs and PRICES. Research in Australia over 40 years shows that on average prices reduce by 30%. Every individual, business, other entity, Government keeps their existing money which with a 30% reduction in PRICES can buy 40% more goods and services. After the day to day shopping Americans will have money left over to pay off their DEBT. Shoppers can have an App on their smartphone to check the reduced prices when they shop to enforce compliance. Any business that does not fully reduce its prices will lose customers and go out of business. This happens at no cost to Government. All Americans in all States will be taxed equally.
To fully fund Government ALL, including International Corporations, pay 2% LIBERTY TAX on the Open Market Value of All Changes Of Ownership (ACOO) into, within and out of the America. This is fair and equitable to enjoy and have the benefits of living and doing business in the USA.
Made in America can replace imports and establish exports not presently possible. An expanding American Economy and Financial strength can STOP and pay off the DEBT presently $US36 Trillion.
2% LIBERTY TAX liberates the American People and America.
Kind regards
Derek Smith CA