The American Spectator

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Since when is trade free?

What chance has the American worker to export American goods and services to mercantilist governments like those of China and Japan, among many others?

Before an American company is allowed (!) to sell to China, it must transfer proprietary technology to Chinese subsidiaries, produce in China, and agree (tacitly) to lobby the U.S. government to open the U.S. further to Chinese exports. Before the U.S. company can say “intellectual property,” Chinese companies have appropriated any commercially valuable technology, thereby reducing the American company’s competitive advantage and exposing it to competition back home in the domestic U.S. market.

Cui bono?

The U.S. must use access to the American market to open foreign markets to U.S.-produced goods and services.

p>Otherwise, “free trade” will remain as nonsensical as “peace process.” br> — David Govett br> www.japanorama.com /p>

Like Mr. Tucker I believe that free exchange of products and services is a good thing. But there are practical matters I would like to see you address. That is the structural disparity in the out sourcing game. Mr. Tucker are you aware:

(1) That a student arriving from India, taking a part time job, is not required to pay any federal income tax ever? See IRS Circular E, pg 14. That is a 17% advantage to the Indian against a native-born student. Or more succinctly, the employer can pay the Indian 17% less and still be at parity with paying the American as far as a net wage to the employee. (Think about that as you buy your cup of coffee at the 7-Eleven.)

(2) That an H-1B holder has two classifications of income? Wage earned and Living Expenses Abroad. The H-1B holder pays the usual tax and FICA on the wage. But they pay no tax or FICA on the Living Expenses. So, the game is, structure the entire employment package with a low wage level and a high Living Expense level. If I had that opportunity I would jump at it, as would most Americans. The net effect is that H-1B here is paying minimal tax, and depending on income level is getting a 17-30% subsidy from the U.S. taxpayer.