How Foreign Consumption Part 1
Channel: Coalition for a Prosperous America
Date: 2014-06-03

Americans -- and only Americans -- are double taxed when selling overseas. Foreign countries have reduced tariffs but replaced them with consumption taxes on imports as trade liberalization has proceeded.  Chinese, Mexico and other countries' manufacturers receive generous consumption tax rebates when exporting.  As a result of these tax subsidies, American companies are often priced out of export markets. For decades, government officials have refused congressional directives to solve this problem in trade negotiations.

In this video, Dr. Peter Morici, Robert H. Smith School of Business, Univ. of Maryland discusses drastic income tax reductions, replacement with consumption taxes, and the resulting competitive advantages for U.S. industries and workers.