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>The EU removes tax burdens from exports (via VAT refunds) and US does not because it has no such system. US didn't collect the tax in the first place, so ther
by Muromec 2y ago
>The EU removes tax burdens from exports (via VAT refunds) and US does not because it has no such system.
US didn't collect the tax in the first place, so there is no burden to relieve the company from. Refunding tax on exports makes it symmetric, otherwise EU would tax exports that US doesn't. I don't get why you bring up corporate taxes here at all, as they are present in both situation and are not refunded.
I doesn't sound like you are arguing in a good faith to me.
>This makes US exports less competitive in VAT countries like Germany.
No it doesn't. Both imported and locally produced goods will have the same tax applied to them. Both local manufacturers and US companies have to price in their corporate taxes. Nobody pays the VAT except the end consumer in the end.
- firesteelrain 2y agoUS collects tax through the entire process and at the point of sale to the consumer. EU refunds the entire VAT so on that point you are wrong. EU exporters have a tax as advantaged export. This is mostly because the US does not have a VAT system.