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'Buy American' legislation draws fire [ITAA oppose to Buy American]
CNET ^ | 2005 May 20 | Ed Frauenheim

Posted on 05/23/2005 12:17:41 PM PDT by Wiz

Adding fuel to the debate over U.S.-international trade, a tech industry group is blasting "Buy American" legislation passed by the House of Representatives this week.

On Friday, the Information Technology Association of America called the measure bad security policy and bad economic policy. The legislation, an amendment to the Homeland Security Authorization Act, would force the Department of Homeland Security to buy products mostly made in America.

The legislation was authored by Rep. Don Manzullo, an Illinois Republican, and passed by the House on Wednesday. It would require more than 50 percent of the components in any end product procured by the department to be mined, produced or manufactured inside the United States.

"With this purchasing prohibition, I guess (the department) will have to learn to do without computers and cell phones," ITAA President Harris Miller said in a statement. "I cannot think of a single U.S. manufacturer that could meet this 50 percent threshold for these devices, and I doubt that those charged with protecting our safety here at home can either."

Manzullo said the measure is in the tradition of the Buy American Act, passed during the Great Depression. "When U.S. taxpayers' dollars are spent, we must make sure the federal government is buying as much of their goods and services possible from U.S. manufacturers," Manzullo said in a statement Wednesday. "This legislation preserves the intent of the Buy American Act while helping to restore the U.S. industrial base and creating jobs for Americans."

(Excerpt) Read more at news.com.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: 109th; buyamerica; buyamerican; itaa; madeinusa; manufacturing; proudtobeamerican; trade

1 posted on 05/23/2005 12:17:42 PM PDT by Wiz
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To: Wiz
I wonder how much our trading partners - some even residing in nations that we generally consider friendly - will be willing to "buy American" once our representatives pass something this shortsighted?
2 posted on 05/23/2005 12:22:10 PM PDT by LowCountryJoe (50 states, and their various laws, will serve 'we, the people' better than just one LARGE state can)
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To: Wiz

The Congress and US government are not very slick when it comes to this. They should pass a tax on luxury autos, most of which are made in Europe.

That would help the US auto industry and steel industry, boost the dollar, and raise taxes all at the same time, and at the expense of the EU and the "wealthy."


3 posted on 05/23/2005 12:23:11 PM PDT by Brilliant
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To: Brilliant
How does this help the consumer from a cost standpoint? How does it also promote innovation if competitive forces are manipulated or muted? I can see where the U.S. auto workers get a free ride and not have to improve their processes and value-added quality, service, and pricing of their total product's marketing mix.
4 posted on 05/23/2005 12:28:28 PM PDT by LowCountryJoe (50 states, and their various laws, will serve 'we, the people' better than just one LARGE state can)
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To: Brilliant

The Congress and US government are not very slick when it comes to this. They should pass a tax on luxury autos, most of which are made in Europe.

Like Cadillacs and Lincolns? BMWs built in Alabama? Mercedes built in SC?


5 posted on 05/23/2005 12:33:21 PM PDT by kaktuskid
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To: LowCountryJoe

True, but that effect would be minimal because we're not really limiting competition, except in the luxury car market. I'm suggesting that we impose the tax on vehicles that are in the, say, $50,000 range and up. We don't make many of those anyway.

If you're going to have protectionism, you might as well do it in a stealthy way, where the EU can't complain. If you're only taxing luxury vehicles, then how are they going to complain?


6 posted on 05/23/2005 12:34:26 PM PDT by Brilliant
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To: kaktuskid

Or Lexus (Lexae?) built in Mississippi?


7 posted on 05/23/2005 12:35:50 PM PDT by Tulane
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To: Wiz

To remind you, this legislator comes from Illinois.
The same Illinois that is famous for attracting trial lawyers and trial court shopping.
Scandals in Chicago and Illinois are popping up at breakneck pace.
Illinois just got labeled the most corrupt State.
This local legislator might be under the impression that laws are made to be circumvented should need, demand and politics so desire.


8 posted on 05/23/2005 12:35:53 PM PDT by hermgem
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To: kaktuskid

Yep. But the most expensive cars are still made overseas. You can fix the starting point as high as you want to make sure it hits the EU instead of domestic producers. Of course, to some degree, it would be possible for them to avoid just by altering the price of their cars.


9 posted on 05/23/2005 12:37:32 PM PDT by Brilliant
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To: Brilliant

Its none of Congresses business what type of car I buy.


10 posted on 05/23/2005 12:55:46 PM PDT by ops33 (Retired USAF Senior Master Sergeant)
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To: ops33

True, just like it's none of Congress' business whether you wear clothes made in China, or buy furniture made in China. And it's none of their business whether I buy a computer made in Taiwan, or one made in Dallas. And if you're an auto maker, it's none of their business whether you buy your steel from Japan, or Pittsburg.

But they've made it their business, and I'm suggesting that if you're going to monkey with free trade, then you should at least do it in a way such that we won't get penalized by the WTO. If you tax luxury cars instead of European cars, then the WTO has no cause to complain. But the effect is pretty much the same.


11 posted on 05/23/2005 1:02:04 PM PDT by Brilliant
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To: Brilliant

Could care less about the WTO and don't want anybody telling me what I can and cannot do with my own money.


12 posted on 05/23/2005 1:08:44 PM PDT by ops33 (Retired USAF Senior Master Sergeant)
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To: ops33

You're living in the wrong country.


13 posted on 05/23/2005 1:10:29 PM PDT by Brilliant
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To: ops33; All

Ditto...


14 posted on 05/23/2005 1:14:36 PM PDT by KevinDavis (Let the meek inherit the Earth, the rest of us will explore the stars!)
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To: Wiz; Paul Ross; Travis McGee; Jeff Head; TapTheSource; Willie Green; DarkWaters; JohnOG; ...

Take for example most of the thin rack servers currently being procured by the DoD. Most them them are anywhere from 30 - 100% made in the PRC. Of course the industries selling such servers to the DoD, and, sort of not telling the DoD about their supply chains, do not want to be forced to both tell about the supply chains and change them to either US or true US allied ones.


15 posted on 05/23/2005 1:45:03 PM PDT by GOP_1900AD (Stomping on "PC," destroying the Left, and smoking out faux "conservatives" - Take Back The GOP!)
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To: Wiz

What a radical idea. American taxes spent for the benefit of Americans. This just has to make the "free traders at all cost the country be damned" object with all of their might.


16 posted on 05/23/2005 3:13:07 PM PDT by em2vn
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