CIT vs ODT - Which is worse, a 35% tax that disappears, or a 25% tax that is charged regardless of profits?

The U.S. dollar, which according to the latest PIIE data exceeds its trade-balancing equilibrium exchange rate by about 25 percent, places a 25 percent overvalued dollar tax (ODT), not only on US exports, but on all goods manufactured in the United States that must compete with imports. Furthermore, the ODT has the same impact on US manufacturers of such "tradeable" goods as providing a 25 percent subsidy to foreign exporters.

This note demonstrates that the burden of this tax on America's manufacturing sector is actually far heavier than the widely despised corporate income tax (CIT).