Hundreds of billions of goods flow in, but little flows out. This creates many problems.

First, the complexity of regulation and high taxes make us less competitive. But we need high taxes to pay for all the moochers. So this is why we have to make the support systems based on what you pay in, not a middle class lifestyle for ShaQuana who plans to have three kids by the time she graduates high school.

We have to balance the dollars in and dollars out. One solid way is to have an across the board 10% “security fee” based on the retail price for the goods entering.

But also, we need competitive factories. To that end, we should have worker and corporate tax breaks for all factories which produce goods for export. For new companies trying to build an export good, we should have a five year tax free window to get their business established. This cannot be a spinoff company owned by large existing companies or have corporate owners who sit on the boards of existing companies in the same space.

One advantage of shifting income from taxes to “tariff” is that we can then revenue neutral lower the taxes on business and the working class. It also gives our business a level playing field as many of our export products get taxes terrible or get their prices driven up by “VAT”

Another advantage of not having dollars flying out of the country is that it stops foreign governments from owning our debt and also stops them from buying up our ports and premiere buildings. We lost the port of long beach to China. Not good.

We should make clear these are “fees” and not taxes. And additional reciprocal fees where countries add huge tariffs.

This is not enough to restore competitiveness. We need new SBA loan programs for starting factories which are NOT personally guaranteed, and new SBA loan programs for technical entrepreneurs.  For US citizens only.  We need a way for new ideas not to sit idle waiting for the venture community to declare it has found its trillion dollar Unicorn. There is a lot broken.

That is not to say Solyndra wastefullness.  But perhaps a million dollar loan for a well reviewed plan. It’s enough to get going. With a focus on exported products. And also how about grants for new technologies to make competitive exports? How about that automatic sewing machine to make that pair of jeans all automated? It should be funded.