alt Hacker NewsSo strange to take VAT into account when it's not discriminating between local or import. By that logic the US has a 5-10% tariff on everything too since we have sales tax in like 47 states.
So strange to take VAT into account when it's not discriminating between local or import. By that logic the US has a 5-10% tariff on everything too since we have sales tax in like 47 states.
The thinking may be that the asymmetry in taxes itself cause a trade imbalance. What can the country do with the extra tax money they receive compared to the lower tax country? They can spend it to fund infrastructure, goods, and jobs inside their own borders.