THE FAIRTAX SERIES: AMERICA’S ROAD TO PROSPERITY
Part 3: BRINGING JOBS BACK TO AMERICA
In this installment of the FAIRTAX series I want to cover the impact of jobs, particularly manufacturing jobs, coming back to the United States. When Bill Archer (R-Tex.) was the chairman of the House Ways and Means Committee, the tax writing body of Congress, he often quoted a survey of 500 international companies located in Europe and Asia. When asked about the impact of the elimination of taxes on capital and labor, and instead have the taxes based on consumption, 400 of those CEO’s, that is 80%, said they would build their next manufacturing plant in the United States. The other 20% said they would move their entire operation here. The reason these companies have located overseas is partly because of the cost of taxes on capital and labor, combined with the complication and costs of complying with the tax reporting required, and the overbearing regulations applied. I covered the cost of compliance in my previous installment of this series (Part 2: The Cost of Compliance).