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Most US state sales taxes also apply to imported products so should othe countries consider that a tariff as well?
by bardak 2y ago
Most US state sales taxes also apply to imported products so should othe countries consider that a tariff as well?
- lazyeye 2y agoI think Trump is advocating for reciprocity so yes if they want to then of course. Ultimately the objective is to to remove trade tariffs/taxes completely but that's not going to happen till there is an incentive for countries to come to the table.
- bardak 2y agoVAT is not a tarrif or trade tax it is simply appling a consumption tax to all goods foreign and domestic.
- lazyeye 2y agoSee my original point.
- bardak 2y agoOther countries are not going to let the USA determine domestic tax policies. If they did remove VAT from items imported from the United States it would lead to the absurd situation where a US merchant could import an item from Germany without VAT and then sell it to consumers in Germany without VAT undercutting German retailers and denying the German government their consumption tax revenue
- lazyeye 2y agoNo problem. In that case the US can restore balance in the trade relationship with tariffs.