Posted: Jun 03, 2005 By: Plastics Design and Manufacturing

Subject: National Sales Tax

Comment: Dear Sir;

I am sure you are aware of the assault on our manufacturing base, and the loss of the high paying jobs associated with that type of work. Many people say we are transitioning to a knowledge based economy, but that is already being outsourced to India. It is my assessment that we must stop the erosion of our manufacturing base.

Without a world class manufacturing base we will have second class defenses, substandard service jobs, and not enough knowledge work to go around.

There are three categories of problems facing domestic manufacturers that our foreign competitors face to a much lesser degree; government regulation, costs of labor, and taxes. This is the three legged stool upon which our global competition stands.

Costs of labor are continually being addressed through productivity gains, and we have the most productive private workforce in the world. Reducing the regulatory burden on business should be a priority for our National, State and Local leaders.

The third leg of the stool is taxes. I am sure by now that you have read or heard the statistic that between 200 and 500 Billion Dollars is spent annually complying with our dizzying tax code. With this kind of money at stake businesses are spending too much time planning their taxes when they should be concentrating on expanding their business, increasing profitability and providing a return to their shareholders.

Rather than fight the good fight many corporations have simply chosen to outsource their production to the least cost local (China). Now, they too can stand on the tool. However, America looses! We loose the tax base, the employee looses his ability to support his family, and if this continues the long term affects will be very destructive to our society.

Two obvious consequences of our income based tax system are reduced incomes, and a savings rate well below other developed nations. The hidden costs of this tax system are myriad. Many citizens have become cynical of the government because of the loopholes, favoritism, and cronyism created by our present tax structure. What is the cost of not caring about your country? What is the cost having millions of people who don’t engage in the American dream?

You have a historic opportunity to change the way we tax ourselves and the improve the ability of millions to once again achieve prosperity. You can recommend to scrap the current system that pits Americans against their government in an adversarial battle over our money. You can make it easier for us to pay our taxes. You can create a system that is above board and encourages savings, investment, and good job creation.

You can recommend the FairTax!

This national consumption tax is simple, easily understood, easily complied with, encourages savings, investment and will bring jobs and prosperity to millions of Americans.

The FairTax will create a tax system that will make our manufacturers competitive in the global marketplace we now live by taxing all goods sold in U.S. the same regardless of their origin. It will help level the playing field for domestic manufacturers, and it will bring manufacturers back to the United States.

The FairTax will pull one leg off that stool and give the American worker a chance to compete in the global market again, earn a good wage, feed his family, and retain his dignity.

The FairTax will motivate millions to once again pursue the “American Dream”

I encourage you to recommend the FairTax to President Bush.


James Reedy
Plastics Design and Manufacturing
(330) 335-4736