Solution to jobs and manufacturing being lost to cheap labor over seas.

Just a few questions and facts before I begin Why has free trade been so beneficial for most countries but such a disastrous albatross for the U.S.? A totally out-of-control trade deficit that is simply not sustainable. Why is it that among the developed and industrialized economies of the world, almost all have trade surpluses? And among those "very few" that have trade deficits, why is the U.S alone the only country with a massive trade deficit that grows each year by double-digit percentages? In 2005 the U.S. trade deficit $716.7 billion. Germany, the largest exporter in the world with an economy and population ï¿½ that of the U.S, exports over 4 times per capita more than the U.S. with a trade surplus of $192 billion. The EU is a free trade zone. Germany's per-capita imports are 70% higher than the U.S and its wages, manufacturing costs and taxes are higher than ours and it is even more dependent on imported petroleum than we are. How is it and why is it possible for Germany to do this? A question that absolutely no one in our govt will ask or even has a clue to nor has the economic intelligence to even figure out. Let me enlighten our readers of this debate! It all starts in Hollywood believe it or not. Until the 1970s the U.S. never had a trade deficit. The last U.S. trade surplus was largest in the nation's history, it was $12.4 billion in 1975. The very next year our trade balance was a $6.1 billion deficit. And has been straight down hill ever since. There was a significant event, the Tax Reform Act of 1976 that erected an immediate and significant barrier to the export of both U.S. goods and services. The Revenue Act of 1962, signed by President Kennedy: (Economic genius) The 1962 Act made the United States the only country in the world to levy a double income tax on its citizens who live, work and are bona fide residents abroad. The 1962 legislation was directed specifically at Hollywood movie stars living and filming in Mexico where income taxes were lower. The objective of double taxation was not to increase tax revenues but to penalize them tax-wise so they would come home. Few Americans abroad were really affected by this legislation. It produced little tax revenue from overseas U.S. citizens but it did meet its objective of discouraging Americans from living and working abroad. At that time, taxation was on the first $25,000 of income earned abroad. That was a lot of money 47 years ago, Overseas citizens, (except diplomats) are generally fully taxed on their worldwide income by the foreign governments where they live just like resident foreigners in the U.S. are taxed by the IRS. No other country (with the possible exceptions of North Korea and Zimbabwe taxes its own non-resident citizens. 1976 legislation: This made radical changes in the 1962 law. It reduced the foreign income exclusion to $15,000, taxed all income above the exclusion at the marginal rates applicable as if the $15,000 had not been excluded and established tighter limitations on applying foreign income tax credits against the U.S. tax obligation. Taxes on income received in foreign currencies had to be paid in U.S. dollars irrespective of local currency laws which might prevent the exchange of such foreign currency income for dollars for this purpose. And the Act, signed by President Ford in October 1976 was retroactive to January 1. It also ruled that previously tax free reimbursements necessary and provided by employers to overseas personnel would be taxed. These reimbursements typically include tuition for children in English-language schools abroad, housing cost allowances for rental costs, security guards, employer-provided local transportation, food and housing at work camps and air transportation for periodic home leave. Reimbursements for taxes were made taxable. The immediate result was disastrous on overseas Americans and their employers. It made U.S. citizens totally non-competitive for most overseas employment. The effect was immediate with a $6.1 billion trade deficit in 1976. In 1979 President Carter appointed The President's Export Council made up of several prominent businessmen including the eminent senators Adlai Stevenson (D, IL) and Jacob Javits (R, NY) and Congressman Bill Alexander (D, AR) which recommended unequivocally the abolition of double taxation by the U.S. of Americans resident abroad. Congress commissioned the GAO to perform a study, which resulted in GAO Report "American Employment Abroad Discouraged by U.S. Income Tax Laws," ID-81-29 of February 1981. Both reports predicted massive trade deficits if the recommended action was not taken to eliminate this double taxation. But the recommendations in both reports were ignored and the trade deficit today is 120 times greater than in 1976. The YTD results point to a $920 billion trade deficit for 2006 up 28% from last year. Our previous economic moron Treasury Secretary not to be confused with Obama's new and just as much as a moron Treasury secretary blames our trade deficit with China on the "Pegging of the Yuan to the dollar and looks for a sure solution in a floating Yuan." We have a floating exchange rate with Europe, but between 2001 and 2005 the Euro increased 52% in value with respect to the dollar. Did this solve our trade deficit problem with the EU? No, during this same 4 year period our annual trade deficit with the EU increased by 42%. Two bills were introduced a couple of years ago to repeal this self imposed destruction by two of the only people in our govt who understood economics and trade, but they were rejected almost imeadiately by the rest of the economic morons in our govt. Obama is our new president and has no clue about this as his solution is to print worthless counterfeit money and create a huge new govt payroll via proxy. He will not remove the chains that stimy our exports because he doesn't even know what the chains are and never will. What is reality? Socialism is our future under Obama. I accept this. Now one must think ahead if one is going to survive in a socialist, communist society. Our export trade deficit will not change. This is a fact if the double taxation laws are not repealed. I site 47 years of undeniable history that can't be refuted. This can not continue indefinitely, this is also a economic fact. The world does not need our exports, they can get them elsewhere. They pretty much do already as the numbers show. We do not need to import goods or services if only to get them cheap. We can manufacture everything we need in this country ourselves if we bring manufacturing back. To say that the world would suffer if the US stopped exporting is quite funny. We would export the same amount regardless of how much we import. We export virtually nothing compared to the rest of the world, what 6% of all export trade. Hardly worth worrying about as far as the rest of the world is concerned. most of the countries we do business with pretty much have all of the things I listed as requirements for imports with the exception of most communist third world countries which we are not even suppose to be trading with because of human rights violations so who cares about them. My opponent says we are headed for a service/information economy. That's because we have no other choice and we will fail even worse at that as our children are being taught worthless politically correct crap that wont prepare them for a high paying computer information job let alone how to compete in a world economy.