Zach Nunn: “Senator Domenici and I believe we have a solution to the export problems created by our current Tax Code. The solution…”

“Senator Domenici and I believe we have a solution to the export problems created by our current Tax Code. The solution is the U.S.A. tax plan. We believe our proposal will make America much more competitive. The first thing the U.S.A. tax plan does to level the playing field is to make America's business tax--which replaces the corporate income tax--border-adjustable. We exclude from our domestic tax base any items made by American manufacturers for export, just as our major competitors do by rebating their value-added taxes when their goods are exported for sale here. Conversely, when a company, foreign or U.S. owned, manufactures abroad and sells in the U.S. market, the company is, through the operation of a new import tax, taxed essentially the same as if the factory were located in the United States. Again, we are trying to give imports and exports the same treatment our competitors do, rather than perpetuate the present system which favors companies that are located abroad selling to this country. Imports would be subject to an import tax that would equal the overall business tax levied in this country. The border adjustability feature of the U.S.A. plan is intended to favor and encourage production and employment here in the United States and to make American goods, services and know-how more competitive in foreign markets.”