Thank you for correcting me on another thread when you posted:
‘VATs act as an ersatz tariff on imports. Germany, for example, has a VAT that tacks on 19% to the cost of all imports. This raises the price on all imports and favors the purchase of domestic goods.’ — Wolfie
Very clear. Thank you again.
You also posted ...
[quote]
... please note, I don’t necessarily support a VAT, just a tariff that would have the same effect. The beauty of the VAT is that is bypasses trade agreements that forbid tariffs:
Approximately 160 other countries are successfully using a VAT, and the playing field will never be level until we have one, too. Because these countries use a VAT and we don’t, our exports are more expensive for them and their imports are cheaper than our domestically produced goods. This puts our factories out of business.
Germany, for example, uses a 19% VAT as a protective tariff against foreign manufacturers trying to sell to the German market. When American cars are exported from the U.S. to Germany, that 19% VAT is added to the price of the vehicle. Additionally, American companies pay an extra 19% in taxes in transportation costs, including docking, duties and insurance.
German products get rebated as they leave their home country and are not taxed upon entering the United States. This means the price of German-made products is lower, both in their home nation and here in America, than American-made goods. We must level the playing field if we want to be competitive.
— Wolfie
VATs are taxes. Tariffs are taxes. All taxes become corrupt because the lawmakers who write the tax code are corrupt.
When has Cruz EVER mentioned a VAT??
This is an imposed interpretation by Cruz detractors.