I’m glad we agree that the VAT is a bureaucratic nightmare, enriching everyone but the poor suffering taxpayer!
HST, VAT is border adjustable: items exported FRom VAT countries have the VAT rebated to them at their border. Essentially, goods FRom VAT countries are untaxed as they leave, thus lowering their retail price.
Advantage: VAT country’s goods exported to non-VAT countries; i.e., USA takes it in the shorts because, except for a small percentage business income tax levied on the US sales company, there is no US tax levied.
FairTax levels the playing field domestically and abroad: the FairTax is imposed in the USA on both domestic and imported goods (at the same rate) and, since the FAirTax is NOT imposed on US exports, VAT on US goods and VAT on their domestic goods balances everything out overseas.
IOW, the tax burden is shared equally and fairly in the USA and abroad.
That, my FRiend is but one of the reasons I like the FairTax. I have already mentioned the FReedom engendered by the FAirTax,
Your point re: tariffs and quotas is well made. I agree.
Picture this: competition between countries based on price and quality of product vice tariffs and quotas picking winners and losers. Countries with VATS would compete with the USA FairTax and vie with one another for competitive advantage, in time eliminating tariffs and quotas and forcing tax rates lower to the point that they would equal out. Stasis may not be the correct economics term, but I think you get the picture.
Thus, FAirTax, in the long run satisfies your concerns re: tariffs, quotas and the wrong people profiting FRom trade.
Please carefully consider incorporating the FairTax into your peer group discussions on the economy.
I would prefer a flat tax first, the Fair Tax second, and the current system a distant 100th place. The prebate still bothers me and until that’s removed, my rankings would stay the same.