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> If there is a complaint to be made about tax policy and implications for US competitiveness in Europe, it is about uncompetitive state sales tax structures in

> If there is a complaint to be made about tax policy and implications for US competitiveness in Europe, it is about uncompetitive state sales tax structures in the US system that yield what is known as “tax pyramiding.” The average state sales tax is probably less than half the average European VAT, so even when you double tax, state taxes are likely still more competitive. > If a European resident orders from a US retailer, they do not pay US sales tax, just like a US consumer can obtain a VAT rebate on purchases of European products. Neither is a subsidy. These are simply consumption taxes falling on the consumer. I wonder how often the US consumer actually gets a VAT rebate on their imported purchases, or how many US consumers are even aware of this.

jsnell 2y ago
> I wonder how often the US consumer actually gets a VAT rebate on their imported purchases, or how many US consumers are even aware of this. It's quite unlikely they would have been charged VAT in the first place if buying online. The seller would have noted that the destination was not within the common market, and shown prices without VAT included. This mostly matters when you're physically in the EU when making the purchase but will leave the EU before using the item. In that case you can get a VAT refund when leaving the country. This tends to be well advertised both at the airport and at the stores that tourists are most likely to shop at.
orwin 2y ago
When I was a student (and poor), the average VAT I paid on products was less than 5% (I only paid for food and had student prices for transportation and musical school, so no Vat on that). Healthcare was also 0%. So it really depends on your situation.