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> Tariffs have a few market-distorting effects that a sales tax doesn't. There are still stupid edge cases. The cake-versus-biscuit saga in the UK comes to min
by lostlogin 2y ago
> Tariffs have a few market-distorting effects that a sales tax doesn't.
There are still stupid edge cases. The cake-versus-biscuit saga in the UK comes to mind.
https://en.m.wikipedia.org/wiki/Jaffa_Cakes https://en.m.wikipedia.org/wiki/Jaffa_Cakes
- ajmurmann 2y agoJust double checking, you are saying reduced competition and scale economics are "stupid edge cases"?
- lostlogin 2y agoI’m saying that using a courtroom to decide the definition of a biscuit indicates a problem with sales tax legislation. Flat rate sales tax has its problems, but avoiding Jaffa cake situations is entirely desirable.
- ajmurmann 2y agoAgreed, complex policies open the door for unintended consequences and have higher enforcement cost. If you do a sales tax or VAT it should be flat. If anyone thinks that it will be regressive or put poor people at a disadvantage, the answer IMO is UBI, even a small one can make up for sales tax on food while avoiding the deadweight loss from nonsense like that Jaffa cake nonsense.