Political Quotes

“I am unalterably against this deal because I think it doesn't fix the basic defect that we have seen in every trade deal that we have made in recent years. That defect is, as most of my colleagues know and understand, that the competitors to American businesses get their value-added taxes rebated to them by their home governments and they in turn charge us what effectively is a tariff in the same amount as that value-added tax when our products go to their country, and we didn't change this in this Peru Free Trade Agreement. It's not really free trade, it's only free coming in one direction, and that's our direction. Let me explain that very simply. If this podium costs $100 and it is made in Peru and it is going to be shipped to the United States, their value-added tax is 19 percent. That means that as they build this podium in Peru, as they add wood and metal and labor, they pay their government 19 percent value-added tax. That is how they pay their tax burden. We have a direct tax burden known as an income tax and a corporate tax. When they take this particular podium down to the docks to be shipped to the United States, the Government of Peru will give them their money back. They will rebate their taxes to them. Effectively that company will be working tax-free.”