China's Geo political strategy, page 9

Originally posted by Soitenly
How do you figure?

Because, the Fair Tax would make it more profitable to do business in America then say a place like china. Ill explain further on down.

Fair Tax means less revenue.

Well now I know im dealing with someone who has know clue with what hes talking about. No, the fairtax is revenue neutral. Our economy in the first proposed year under the fairtax, is expected to grow at 10.5% and by 2015 our GDP would double what it is today.
If I may make a suggestion.. Read up on what the fairtax would do for the US economy.

Look, I even provided a source for you.
www.fairtax.org...

Either America will finance China's economic growth or Europe will finance China's economic growth.

No. The answer is NEITHER! Europe would be relocating its buisnesses to the United States because there profits would increase, as would places in Asia including China itself. FairTax surveyed 500 major foreign companies in the EU and Asia and asked what they would do if the USA no longer had an income tax. 400 of those companies said they would build their next factory in the U.S. 100 of these foreign companies said they would move their headquarters to the U.S.

This would increase our Foreign trade. Our current tax laws restrict trade. The income tax puts American companies at an unfair disadvantage when facing worldwide competition. As our goods are shipped around the world, they contain the compounded costs of our tax system. This makes our goods more expensive and less competitive compared to foreign goods. The FairTax allows U.S. exports to compete at lower prices than they do now. Lower prices on our goods will greatly increase the demand for U.S. exports. This will also increase jobs in U.S. manufacturing companies.

Imported items will be subject to the same FairTax rate as goods produced domestically in the U.S. Right now foreign goods are cheaper due to lower labor costs (China and Indias biggest advantage) and they don’t have the built-in high hidden corporate taxes and compliance costs American goods are burdened with under our current taxation system.

With the FairTax in place, American products will be better able to compete, both at home and abroad.

With no income tax, no corporate tax and no capital gains tax, the U.S. would become the world’s largest tax haven. The United States will be the only major country in the world with a zero tax rate on income, making it the most attractive place for foreign companies to locate facilities and create jobs.

Do not be such an isolationist, China will be financed by someone.

The fairtax will make america more INDEPENDENT. Meaning no more cheap crap that falls apart from china. Nothing wrong with that. It sure as hell wont make us more isolationist either as america would be even more business savvy then it currently is. It would remain the main driving force in the world economy. But even more so then it is now.