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Comment by mopsi | Hacker News Reader

> The US does not provide tax relief for its exporters and does not impose VAT on imports.

It does. Exports from the US are exempt from sales tax, the same way others exempt their exports from VAT. Neither side pays domestic consumption taxes on exported products, and both sides charge consumption taxes equally on all domestic consumption, no matter where the products were produced.

Both American and European products cost a little more in Germany due to 19% VAT, and both cost a little less in the US due to 7% sales tax. Nobody gets a free ride.

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US is not exempt because it accumulates throughout the entire process whereas VAT is refunded. US bakes the sales tax on acquired parts from their suppliers into the cost of their exported products whereas the EU exporters have an advantage. It’s a structural problem with the US tax system in this case.

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.

It’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.

I'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.

And 170 nations can be wrong.

https://www.quora.com/Why-does-the-US-not-have-a-VAT-or-nati...

By that standard 45 out of 50 states are also getting it wrong, since those arguments apply equally to sales tax as VAT.

That makes no sense

I’m sorry, but that is an issue on your end.

You are the one who is failing to explain. Better to work on explaining your arguments and comprehending better.

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