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> Hong Kong and Singapore basically did that for decades and grew fast and became wealthy. Tariffs mostly hurt the countries introducing them. Wouldn't you say
by thaumasiotes 2y ago
> Hong Kong and Singapore basically did that for decades and grew fast and became wealthy. Tariffs mostly hurt the countries introducing them.
Wouldn't you say the same thing about VAT?
- tim333 2y agoVAT is basically just a fancy sales tax. You've got to get money for education, health and the like somehow. HK and Singapore did have low tax and small government which probably helped them.
- thaumasiotes 2y agoSo... VAT is a better approach than tariffs because it does a lot more economic damage? That's not very compelling. Why forgive VAT what we can't stand in tariffs?
- tock 2y agoThis is like saying income tax is a tariff because it stops people from buying more imported product.
- thaumasiotes 2y agoIt's like saying income taxes and tariffs do their damage in similar ways. They do. Income taxes are another thing that mostly just hurts the country introducing them.
- tock 2y agoLets extend your logic then: VAT is another thing that mostly just hurts the country introducing them. Is the United States trying to free Europeans from the tyranny of their government? Americans should also stop paying sales tax and income tax.
- skdotdan 2y agoNot true. VAT does way less economic damage. Tariffs introduce massive distortions in the market.
- wqaatwt 2y agoWhat does VAT have to do with anything? What are you even trying to say? It applies both to domestically produced products and imports in the same way.. > Why forgive VAT what we can't stand in tariffs Now replace VAT in that sentence with incomes tax, alcohol duty, property taxes.. makes no sense.
- Zanfa 2y agoVAT applies equally to domestic and imported products and doesn't affect the balance. Tariffs only apply to imports, thus giving domestic producers an advantage (either lower prices or higher profit margins).