alt Hacker NewsMost goods in US directly or indirectly relies on importing. So practically, I think it just mean US introduced VAT.
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Except VAT and Sales Tax is typically applied regardless of where the item / service originated from.
It also doesn't apply potentially several layers down.
That's not to mention things like reverse charge for B2B etc.
In other words, not similar at all!
Not quite the same.
An item sold for $1000 say would pay $100 at 10% VAT. The items in the supply chain all charge VAT and reclaim VAT they spent. I think usually this terminates at the import (maybe?)
Well, when you put it that way... it doesn't seem that bad at all.
Maybe the real innovation here is the political manouvering of coming up with a new, desperately-needed government revenue stream.
Except it seems like the president has more control over tariffs.
Taxes are approved by congress, so this was surprising to me. Does the president essentially has full reign to tariff whoever they want (for whatever reason) until the end of their term?
Maybe this is less about economic independence and more about grabbing whatever power is within reach. If domestic taxes were up to the president and tariffs were up to congress, would we see exactly the same situation with domestic taxes?