Exports do not depreciate the currency. Exports strengthen the currency.
I understand there are no payroll taxes under FT my post reflects that.
Being a reserve currency causes the dollar to be over-valued.
WTO rules would not allow the US to claim a trade advantage for removing CNIT. I never said the rules would prevent the US from removing it.
Nor would I argue that sales taxes are the equivalent to a tariff.
No "claim" is required to remove them ... the FairTax is border-adjustable taxation as is the VAT currently used by Euro (and other) countries.
This would cause problems for the VAT countries if we go to the FairTax since that would be the only tax here, but the VAT countries typically have (in addition to the VAT) corporate and/or personal income taxes which work to embed some costs into their exports thereby making them les price-competitive.
Exports do not depreciate the currency. Exports strengthen the currency.
LOL, the effect of a change in competitiveness of one's exports in foreing markets, affects currency exchange rates as described.
The exports are already going on if you haven't noticed. The point under discussion is what happens when an initial competitive advantage is exploited due to a change in tax systems, and what the response in currency markets and trade balances are as the evolve in time.
Exports do not depreciate the currency. Exports strengthen the currency.
Then what were you bring up payroll taxes for, in a discussion of international trade balances Justshutup: "I agree that sales taxes do not affect exports I was merely referring to the payroll taxes."
Being a reserve currency causes the dollar to be over-valued.
Lot of things affect the value of the dollar, being a reserve currency is just one. Competititive position in trade relations with other nations is another.
WTO rules would not allow the US to claim a trade advantage for removing CNIT. I never said the rules would prevent the US from removing it.
Meaningless statement, WTO rules do not govern wether or not remove CNIT. They only govern whether or not trying to rebate it at the border for our exports in the same manner that VAT countries rebate their VATs at there borders is seen as a an illegal trade subsidy to US manufacturers that importer do not recieve equally or not.
Repealing corporate taxes and replacing them with a totally border neutral tax that treats domestic and foreign goods equally is at the foundation of GATT/WTO requirements. Doing so is totally within the constraints of those agreements, and merely assures a level trading field applied by the same rules that allow a VAT to be rebated at borders.
Nor would I argue that sales taxes are the equivalent to a tariff.
That's great because no one has suggested that yet. Especially seeing as domestic manufacture is treated exactly the same as foreign manufacture under a retail sales tax.