Warren Buffett’s concept to significantly reduce USA’s trade deficit.
I’m a proponent of a proposal that was introduced to the Senate in 2006. Trade deficits are always detrimental to a nation’s GDP. Trade deficit’s detriment to the GDP exceeds the amount of the deficit itself. The GDP bolsters the median wage.
The basic concept is for exporters who choose to pay the federal fees acquire transferable IMPORT Certificates for the assessed value of their goods leaving the USA. Importers would be required to surrender IMPORT Certificates for the assessed value of their goods entering the USA. Surrendered certificates are cancelled.
This trade policy would decrease USA’s trade deficit of goods and increase the aggregate sum of USA’s imports plus exports. It can be drafted to be completely self funding. It would not require any additional federal spending, taxes or debt. It would be a permanent stimulant that would increase our GDP more than otherwise.