This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

US Is Halfway To Obama 5-year Export-doubling Goal

Federal legislative "Buy America" restrictions on certain recent government contractsâ¿¿ considered protectionist by many economists â¿¿ are also being credited with helping to spur some recent U.S. manufacturing gains.

The U.S. now makes about 18 percent of the world's goods, down from nearly 40 percent right after World War II. Clearly, many manufacturing jobs will never come back.

"The U.S. had manufacturing trade surpluses until around 1980 (but) has run big deficits since then," said Martin Baily, a Brookings Institution senior fellow and co-author of a new Brookings study of U.S. manufacturing.

The study showed that high trade deficits, especially with China, and high U.S. business tax rates are combining to keep U.S. manufacturing from rebounding more strongly.

Manufacturing "still remains a very important sector and one that I think we need to foster and that needs to flourish," Baily said. "So we need to expand manufacturing in order to reduce that trade deficit. We can't just do it on services alone."

Republicans have long clamored for lower corporate tax rates to stimulate business growth. At a nominal top rate of 35 percent, the U.S. has the highest corporate tax of the world's industrialized nations.

While few U.S. companies actually pay the full rate due to various deductions and credits, U.S. tax bites dissuade foreign companies from setting up shop here while providing incentives to U.S. multinational companies to keep large sums overseas, Republicans argue.

Obama largely agrees and has proposed lowering the top rate to 25 percent for manufacturers, even lower rates on income from still-undefined "advanced manufacturing" and 28 percent for all other corporations.

Laura D. Tyson, who was President Bill Clinton's chief national economic adviser and served on Obama's Economic Recovery Advisory Board, said there are big barriers to getting a significant reduction in corporate rates. Among them: "The country desperately needs more tax revenues" and "there are huge vested interests" to protect existing loopholes, she said.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs