Most countries in the world collect a border-adjusted value added tax; the USA does not. In this document, posted on his blog, former US Senator Ernest F Hollings succinctly points out a problem this creates for American manufacturers:
Our tax laws force off-shoring. You can manufacture a computer in Chicago, which requires an average corporate income tax of 27%. Exporting that computer to China, when it reaches Hong Kong, China adds another 17% value added tax. But if you manufacture a computer in China, the 17% VAT is rebated or cancelled as it leaves Hong Kong for Chicago. And when it reaches Chicago, there is no 27% add-on, making for a 44% penalty to produce in Chicago. Imagine a country where you can’t produce for a profit. Well, that’s Obama’s United States today.
Hollings is the last person you would expect to find online, but his blog is terrific.

The 40th anniversary of US children’s TV series Sesame Street has been getting a great deal of publicity; for example, the Google homepage has been decorated with Muppets all week. So I keep wanting to hear Nancie de Ross’ version of the Sesame Street theme. Go to 


