Hollings, (fmr.) Sen. Fritz, “The Ever Increasing Need for an American Industrial Policy,” The Huffington Post, 02/11/10

“Job loss from the recession will rebound when the recession ends. But the job loss from off-shoring won’t rebound until we adopt an industrial policy to compete in the trade war. It won’t be easy. Corporate America and Wall Street love the bigger profits from off-shoring. They’ll oppose any trade bill or measure to develop an industrial policy with cries of “free trade,” “protectionism,” “educate,” “innovate.” As Henry Clay long ago cried on the floor of the United States Senate about free trade: “It never existed … it never will exist.” We have enough education to attract Boeing. Tell Tom Friedman innovation doesn’t produce jobs in the U. S. Innovation is immediately developed with jobs in China. Microsoft and Intel have already gone to China. We’ve got to wake up and start manufacturing again. But it won’t happen with Wall Street and Corporate America furnishing Congress the contributions to do nothing.
Congress must adopt an industrial policy that the people will support and pressure Congress to adopt. For example, cancel the corporate income tax and replace it with a 3% value added tax. The average business tax is 27% with China adding a 17% VAT on U. S. imports to China, amounts to a 44% incentive to produce in China rather than the United States. Replacing the corporate tax with a 3% VAT raises more revenue, removes the incentive to off-shore, saves jobs, and promotes exports creating jobs. The people will favor this. But the people will have to pressure Congress to enact it because the CEOs of Corporate America don’t want to have to go back to work producing in the United States.”