Congress Considers Raising Taxes on American Consumers and Firms Buying Chinese Imports

Here we go again.....

WASHINGTON (AP) -- "After years of unsuccessfully trying to force American consumers and businesses to pay higher prices for Chinese imports, Congress is taking another stab at retaliating against what many see as Chinese manipulation of its currency to make its exports to the United States cheaper for Americans and U.S. goods more expensive in China.

The Senate is expected to take up legislation Monday that would impose higher U.S. duties taxes on Americans buying Chinese products to offset the perceived advantage that critics say China gets by undervaluing its currency in favor of millions of American consumers and thousands of U.S. companies.

It's a political shortsightedness because given here that China's economic policy has damaged American manufacturers and taken away American jobs has saved American businesses buying low-cost imported Chinese inputs millions, if not billions of dollars, and helped U.S. firms be more competitive and in the process support  and create U.S. jobs.  Further, the cost savings from American consumers buying Chinese imports has freed up billions of consumer dollars that have been spent elsewhere in the economy and have supported and created thousands of jobs throughout the U.S. economy.

Beijing denies that its exchange rate is responsible for the huge trade deficit that the United States has with China, and it's not clear that U.S. lawmakers have the political will to follow through with imposing new taxes on the fragile American economy.

Sens. Chuck Schumer, D-N.Y., and Lindsey Graham, R-S.C., along with others, have tried for at least six years to pass legislation making it easier to impose higher tariffs taxes on American consumers and businesses buying Chinese goods. That would help compensate punish millions of Americans for what they say is Beijing's effort to keep its currency, the yuan, undervalued against the dollar and provide everyday low prices for millions of struggling poor and middle-class Americans.

Among Republicans, presidential hopeful Mitt Romney has said he agrees that we should would penalize American consumers and businesses with higher prices through higher taxes when they buy imports from China China for keeping its currency artificially low.

MP: To the extent that China is manipulating its currency to provide low prices for American consumers and businesses, we should be thankful for the "foreign aid" being provided, and be grateful for the ongoing transfer of wealth from the relatively poor Chinese citizens to the relatively wealth Americans.