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Raw materials like steel used in bulldozers, as well as machinery and supplies, are often exempt from sales tax, especially when the finished products are expor
by mopsi 2y ago
Raw materials like steel used in bulldozers, as well as machinery and supplies, are often exempt from sales tax, especially when the finished products are exported.
Nevertheless, in some scenarios, sales tax can indeed cascade and be charged multiple times during the manufacturing process, so even if it's not charged at the final step, there's still a component of it in the final price to the buyer.
This is not a hidden tariff by other countries against US products. Other countries have no control over this. The US government simply sucks at taxation because it has not transitioned to VAT, and products cost more to manufacture than they would have under a better tax system.
- firesteelrain 2y agoIt’s your opinion that it’s better. Not everyone agrees. Tariffs are legal under US law to apply. EU also needs to step up their military contributions before Russia bulldozes them.
- mopsi 2y agoI'm far from the only on holding this opinion. 175 out of 193 countries have transitioned to VAT because of the obvious benefits. Trump shaking more money out of US consumers with new taxes on imported products does nothing to fix the issue. As the article points out, domestically produced and consumed products suffer from the same problem.
- firesteelrain 2y agoAnd 170 nations can be wrong. https://www.quora.com/Why-does-the-US-not-have-a-VAT-or-national-sales-tax-like-most-other-developed-countries-How-do-Americans-feel-about-being-taxed-for-their-purchases https://www.quora.com/Why-does-the-US-not-have-a-VAT-or-nati...
- alexanderchr 2y agoBy that standard 45 out of 50 states are also getting it wrong, since those arguments apply equally to sales tax as VAT.
- firesteelrain 2y agoThat makes no sense
- alexanderchr 2y agoI’m sorry, but that is an issue on your end.
- firesteelrain 2y agoYou are the one who is failing to explain. Better to work on explaining your arguments and comprehending better.