Import Tax

Among the obvious problems this country faces today--and undoubtedly well into the future--are the budget deficit and the trade deficit.

Many solutions have been proposed by politicians, economists and scholars. And for every proposal, there have been valid objections, providing a rather dim light at the end of the fiscal tunnel.

Let’s try this one on for size.

I would propose a federal consumer tax of 2% or 3% (whatever is required or deemed feasible) on all competing imported consumer goods. The income would be applied only to the federal budget deficit.

This appears to have several advantages.

First, it would unquestionably be beneficial in regard to the trade deficit. Consumers would likely think twice before paying a tax on a purchase of, say, a Mitsubishi TV as opposed to a domestic brand, assuming relatively equal quality.

Second, it would not carry the stigma of a protectionist tariff, since the choice would be strictly up to the consumer. If a foreign company makes a definitely superior product, many consumers would be willing to pay the extra cost. Along the same line of thought, it might well stimulate domestic production of more and better goods.

Third, it would not have the odium of a general tax increase, since it would not apply across the board but would be selective in nature. The consumer would have the option; pay the tax for a desired foreign product, or buy an American product tax-free.

G.M. BRYANT

Yucca Valley