This fair and neutral process will reduce loopholes and behavior associated with tax evasion. A national consumption tax will provide a system that is easily visible, simple, and fair. Enforcement will be a lot less intrusive, returning personal freedom and privacy to the American citizens. Trade A sound tax code will be one that promotes domestic and international trade through productivity and efficiency. The current tax system discriminates against domestic products.
Every American manufacturer is responsible for both income taxes and compliance costs.
This amount is included in the selling price of every product, shifting the burden on to the American consumer. These costs are embedded, making American exports more expensive than their foreign counterparts. In addition, upon arrival to foreign markets, many countries add their own tax to the products. This makes it difficult for American products to compete internationally, and may drive many companies out of the market. The same holds true against domestic trade.