The 33% Solution also protects American companies from unfair competition from foreign businesses.  Every company that sells goods to America would pay an import tax on the same scale as American based businesses.

Foreign companies that import goods into America – whether parts to be assembled here or finished goods – would pay an import tax that makes the labor cost in the price of their goods fair in relation to labor costs in America.  This protects American workers and is fair to workers in other countries.[1]

What Else Will the New IRS Do…

The 33% Solution diminishes the role of the IRS.  The New IRS’s main job is to oversee tax reporting and collection.  In addition, since companies - not individuals – pay all the taxes, this approach simplifies the collection process and would save billions of dollars every year.

Local government (city, township, county, etc.) could actually collect the Federal Tax and charge a fee to the IRS for doing so.  Since most local governments already collect taxes and track employment, they could keep a close watch on the employers within their boundaries and the New IRS could support their efforts and oversee their activity.  When a local government does not have an income tax of its own, the State Government could collect the taxes for them.