Chairman of the Board, Revere Copper Products, Inc.
There is a lot of talk recently about a Value Added Tax, or the VAT. What is it? Will it hurt me or help me? Is it another step on the path to tax and spend? Is it a way to tax the poor and relieve the rich? Why is there so much emotion about it?
For a moment, please put aside concerns about issues like progressivity and tax and spend. We’ll return to those issues later as we see how they play in the rest of the world.
Bob's Printer Replacement Parts, Inc. (not the company's real name) was headquartered in the
Southwest United States. The BPRP, Inc. makes replacement parts for copiers and printers, but has moved production to
Mexico. While all research, development and admin staff remains in the company's
U.S. headquarters, all production has moved to
Mexico.
A predominant reason for this move is the foreign Value Added Tax.
Dura-Metal Products Corporation is a 37 year old metalworking company located in
Southwest Pennsylvania with a primary focus in servicing the tungsten carbide and industrial ceramic manufacturing sector.
Dura-Metal employed 89 people in January 2009. Today we employ a staff of 61, offering a family-sustaining income. Among our employees include many highly skilled metalworking craftsmen. Like most small and medium manufacturers, our business and industry is half of what it would be if it were not for unfair foreign competition. We lose jobs daily to foreign competitors because their governments illegally intervene in the market to give them an unfair price advantage. The national manufacturing base we service is eroding rapidly as domestic manufacturing is shifted off shore at unprecedented rates.
The actions supported by the Coalition for a Prosperous America and its allies will help free trade to work better for companies like ours.
