4 ms·
Without going line by line, I will say that you make all valid points and are correct. But you are ignoring key trade competitiveness issues due to the way VAT
by firesteelrain 2y ago
Without going line by line, I will say that you make all valid points and are correct.
But you are ignoring key trade competitiveness issues due to the way VAT and US tax system is structured. EU system incentivizes trade exports by making sure they leave the country tax free. US does not.
The disadvantage is not the VAT itself but lack of equivalent tax relief. The real fix is to tax policy but Trump’s only way to fix it right now is via executive action using tariffs. It’s sort of a blunt instrument but it can be effective for what he is trying to achieve.