4 ms·

Obviously other countries would be fine with Trump enacting a sales tax / VAT on everything. Why wouldn’t they be?

by Zanfa 2y ago

rufus_foreman 2y ago
Because it would reduce US consumption of their exports. Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports.
- michpoch 2y ago
  > Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports. Same way it reduces the consumption of domestic goods? Seems like fair level?
  - rufus_foreman 2y ago
    >> Seems like fair level? No, it does not seem fair for Europe to take measures to dramatically reduce European consumption of US exports when the US does not take measures to dramatically reduce consumption of European exports. To be fair, the US would need to do something to dramatically reduce US consumption of European exports. And I happen to know just the guy to do it. Seems like fair level?
    - ks6g10 2y ago
      I think you have the wrong understanding, VAT is applied irrespective of origin, so the same reduction would apply to domestic products. To simplify, US product for sale for £100, then VAT would be £20 ( assuming 20% rate) UK product for sale for £100, then VAT would be £20 ( assuming 20% rate)
    - 8note 2y ago
      it is however unfair that the US takes advantage of europe by mot having proper food and safety standards, not to mentioning using slave and undocumented labour. same thing with privacy, the US is abusing europe by not having comprehensive privacy standards equivalent to the GDPR. only california is not defrauding the EU
- seanmcdirmid 2y ago
  > Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports. Uhm, it also reduces consumption of locally produced goods, not just something imported into Europe. Its like...a sales tax, the only reason it is treated differently from a sales tax at all is because of its more fair rebate system.
- Zanfa 2y ago
  VAT applies equally to both domestic and imported products, unlike tariffs that apply only to imports.

Obviously other countries would be fine with Trump enacting a sales tax / VAT on everything. Why wouldn’t they be?

by Zanfa 2y ago

Obviously other countries would be fine with Trump enacting a sales tax / VAT on everything. Why wouldn’t they be?

Because it would reduce US consumption of their exports. Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports.

michpoch 2y ago
> Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports. Same way it reduces the consumption of domestic goods? Seems like fair level?
- rufus_foreman 2y ago
  >> Seems like fair level? No, it does not seem fair for Europe to take measures to dramatically reduce European consumption of US exports when the US does not take measures to dramatically reduce consumption of European exports. To be fair, the US would need to do something to dramatically reduce US consumption of European exports. And I happen to know just the guy to do it. Seems like fair level?
  - ks6g10 2y ago
    I think you have the wrong understanding, VAT is applied irrespective of origin, so the same reduction would apply to domestic products. To simplify, US product for sale for £100, then VAT would be £20 ( assuming 20% rate) UK product for sale for £100, then VAT would be £20 ( assuming 20% rate)
  - 8note 2y ago
    it is however unfair that the US takes advantage of europe by mot having proper food and safety standards, not to mentioning using slave and undocumented labour. same thing with privacy, the US is abusing europe by not having comprehensive privacy standards equivalent to the GDPR. only california is not defrauding the EU
seanmcdirmid 2y ago
> Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports. Uhm, it also reduces consumption of locally produced goods, not just something imported into Europe. Its like...a sales tax, the only reason it is treated differently from a sales tax at all is because of its more fair rebate system.
Zanfa 2y ago
VAT applies equally to both domestic and imported products, unlike tariffs that apply only to imports.