[ma_che62]

Huge Trump fan here...but dumb something down for me.

A European VAT is a tax that Europeans pay on goods that they purchase, regardless of the origin of the product, e.g., when an Italian buys a BMW, he pays the European VAT.

When he buys an imported Chevrolet, he pays the VAT (same rate he pays when he buys a BMW) AND he pays a tariff or duty...I guess in some cases from 10% - 20%.

I thought it was this last tax...the tariff or duty that Trump thought was unfair.

The VAT is “not unfair” and should not be taken into account in his war on unfair tariffs imposed on U.S. products imported into Europe because Europeans pay the same VAT (rate) when they buy products made in the EU.

Taking into account the VAT does not make sense if you are simply looking for equal treatmenet.

Thoughts?

[MNJohnnie]

"Trump and his advisers argue, the ability to claim a VAT rebate when products are exported gives European companies an unfair advantage as imports from the US are charged VAT of 15-20% or higher depending on the member country"

VAT taxes are applied to imports and rebated on exports by the EU. It an indirect tarrif pretending to be a tax

[Taxman]

I am a long-time advocate of the FAIRtax.

This linked article will provide you with an answer to your question. It is a long, but very worthwhile read: https://mr.cdn.ignitecdn.com/client_assets/fairtaxorg/media/attachments/57be/78aa/6970/2d1f/f238/0d00/57be78aa69702d1ff2380d00.pdf?1472100522

I am excited about President Trump’s efforts to “level the playing field” re: US trade, and I firmly believe that a sane mixture of import duties and the FAIRtax will help Make America Great Again!

In addition, eliminating the Marxist inspired “progressive” income tax and the IRS will be VERY beneficial to the American people and the US ecomomy!

I encourage you to fully investigate the FAIRtax at https://www.fairtax.org.

[Reeses]

Taking into account the VAT does not make sense if you are simply looking for equal treatmenet.

The goal is roughly equal trade, not equal tax collections. Taxes reduce demand, so demand for American products is reduced in Europe, while demand for European products in America is not, resulting in a permanent trade imbalance. That's a no go in Trump's world of deal making. A fair trade agreement is proven fair by no permanent trade imbalance. Anything else is unsustainable.