Around 1 a.m. last Tuesday, I found myself at a mailbox somewhere near my apartment, tax forms in hand. Among the thoughts circulating through my head was concern that I had misreported my financial information — assuming its even possible to misreport annual earnings as humble as mine — as well as worries about whether I had just dropped my return forms into some defunct mailbox (despite the fact I've never been victimized by faulty postal service, I can never really feel comfortable) and anxiety over when I could expect Uncle Sam to toss back the several hundred dollars I'd lent him throughout the year.
Eventually, however, I also began to think about the complicated collection formulas employed by the Internal Revenue Service at the behest of policy makers. Because of the rush at tax time, there is often little room to reflect. Having simply considered the complexity of even a personal income tax form, it becomes apparent the extent to which creativity can be applied in devising a revenue-gathering scheme. And in this modern era of perpetual U.S. budget woes, a little bit of creativity could go a long way.
Interwoven into a quilt of economic pacts and free trade agreements with foreign countries, the United States has long been unable to impose taxes on various imported goods and services. This, of course, works to ensure that our counterparts also lack such a freedom and that trade between the parties in agreement can occur unimpeded. Therefore, in the simple world of hypothetical economics, no country can unfairly hold a competitive advantage over any other with which it has entered a free trade agreement.
But free trade and globalization in reality are a far cry from the theories used to explain them in textbooks.
Although its current leadership has kept the United States largely on the straight and narrow in terms of the country's compliance with trade pacts, other countries involved in these pacts have not acted accordingly. Often, overseers of free trade agreements will voice complaints over things such as high farm subsidies in France, unfair currency practices in China or generally veiled protectionism in Japan. Yet these practices, and many similar ones, are ongoing and continue to provide major economic advantages to the countries that use them.
So why isn't the exploitation of trade pact loopholes more of an option in the United States? After all, what is the harm in temporarily gaining revenue from a glitch in a trade agreement if such is common practice in other countries?
There are many conceivable measures the United States could take to gain additional revenue without exclusively penalizing its own economy.
Consider the idea of taxing companies officially based in the United States but whose operations are completely global. For instance, say the U.S. government imposed a $300 per restaurant fee to be paid by every McDonald's restaurant (and lawmakers could certainly concoct language clever enough to create such a specific tax). Obviously, these restaurants, however begrudgingly, would simply pay the fee, as it would be relatively insignificant to them. And the burden passed on to consumers would be spread out on a global level. Therefore, while U.S. consumers might see the price of a Big Mac rise by 1 cent, so would the rest of the world. But U.S. consumers, unlike their counterparts, would have profited from the revenue generated by the tax.
Although this is only one example of how an individual government can temporarily exploit globalization for its own advantages, there are many others. Because so many U.S. firms can now be considered entirely global in operations, the possibilities of huge financial gains accompanied by minimal detriment to the domestic economy are vast.
It is about time U.S. leaders re-examine the language of the country's free trade agreements. In our current financial condition, every option of revenue collection must be considered.
Rob Rossmeissl ([email protected]) is a senior majoring in journalism and political science.






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I like your column, because it’s always interesting to see what worthless prose you pad your opinion with in the first two paragraphs.
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Repeal the 16th amendment! Eliminate all taxes on income, just as the founding fathers intended.
Fund the federal government with tarrifs and watch the trade imbalance melt away.
Put tarrifs on intelletual property and services and watch off-shoring of US jobs disappear.
http://en.wikipedia.org/wiki/Tarrif
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Excellent idea, 7:10. I’d like to take a step further. Blue state secession. We blue states pay 2/3 of the federal revenue while the red states get a free ride. If we seceded, we’d be rich. And since we blue states have most of the non-farm industry that’s left, we’ll be able to keep the jobs we have plus create more. We would be the single largest economy in the western hemisphere.
We would no longer have the burden of paying off the federal deficit which, according to the US Treasury, now stands at $8.8 trillion, thanks to Dubya and his phony war on terrorism. We wouldn’t have the burden of supporting military bases in over 130 foreign countries. We’d be better able to take care of our schools, roads, we’d have a health care plan AND we’d be in firm control of most of the natural resources in the US.
As for the red states, well, they are the religious nutcases. Let them pray for a miracle.
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Hell, I’d get started on the secession thing right now. I haven’t filed a federal return this year. And I’m not going to. I refuse to pay one more dime to a government that has lied, killed and swindled its way into power. I’m also sick of all these gun-loving patriotic wingnuts who think this country’s headed in the right direction. I think a national tax revolt would a good first step toward secession for the blue states.
Let the neo-cons support the faux war on terror. My taxes will go to charities that need it. As for you honest taxpayers, you can call us traitors now, but in a couple of years many of you will be joining us. No one cares if you’re an honest taxpayer. You are nothing more than a chump that is playing into the system’s hands. All you can do is bitch and moan because your tax dollars are wasted.
The IRS can’t nail us. Weak state and local economies secretly love us. The more of us there are, the weaker the Fed becomes. We can help shore up our state and local economies with our extra spending power. We are anonymous. Let the patriots pay off the big-ass deficit. You can’t beat us , so you may as well join us.
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Yeah, good idea, just be sure to make yer Blue Country a “gun free” zone. Then google Danegeld and git yer checkbooks ready.
ROFLMAO
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10:04, if Bush is the Danegeld you are referring to, then worry no more. He won’t have the bucks to pay marauders to invade us. His kingdom will be in disarray, his peasants shall revolt. And who in the southern wasteland would dare to venture into the frigid northern region to rape and pillage? For the north is mighty and her strength is unbreakable. Her armies are many(168 million to the south’s 125 million). And while the North prospers, Mexico to the south shall reclaim the territories of Texas, Arizona and New Mexico.
Fear not, for the sniveling cowards of the South, who once boasted of bravery and grandeur, shall sow their seeds no more. See, they beg for mercy, but their cries fall on deaf ears. And the Bushites, for want of a victory, shall have none.
Blue state secession now.
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Oh, ROFLMAO, you scare me! I hope my daughter doesn’t run into you on the street.
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ROFLMAO, piss off! If we want to secede, we can damn well do it. Care to try to stop us? I’m not paying my federal taxes next year. Kiss my ass, ya ignorant Repub arse! Who’s gonna do anything about it?
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“If we want to secede, we can damn well do it.”
That’s just exactly what the Rebels said, but Abe put paid to their treason.
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“if Bush is the Danegeld”
Then you would be an idiot. Here, try this and see if you can learn something:
http://en.wikipedia.org/wiki/Danegeld
Then try this and see if you understand:
http://whitewolf.newcastle.edu.au/words/authors/K/KiplingRudyard/verse/english_history/danegeld.html
PS. Mexico is more interested in California. I guess you could still get some cheese from Wisconsin but you’ll be short of bread and corn.
PPS. The “Rust Belt” isn’t the industrial powerhouse it once was, so the might might not be as mighty as you think.