Trumps Justified Complaints about Europe's Cheating at 'Free Trade'; the VAT

[JimBowie1958]

The freaking EU goombas are using a stealth tariff in the form of VAT taxes and tax forgiveness to advantage their exports like mad.

http://www.ohfairtax.org/FAQ/FAQImports.htm

American companies operate under a servere disadvantage compared to our foreign competitors. A company producing a good or service in the United States must pay the employer portion of the payroll tax, which amounts to 7.65% of their total labor costs. In addition, any company incorporated in the US, or private company owned by an American, must pay income tax on any profits realized when they sell their products or services in the US. This income tax may be as high as 35% of their net profit.
These costs are incorporated into the prices of the products and services, and passed along to their customers as embedded, or hidden, taxes. Taken together, these embedded taxes constitute anywhere from 15% to as high as 25% of the price charged for the manufactured good or provided serve.
In addition, because our tax code is so complex, requires extensive recordkeeping and documentation, and changes substantially from year to year, there is a significant compliance cost with operating a business in the United States. A combination of studies in 1993 and 2008 show that tax code compliance costs may be as high as 10% of business profits (Average profits of 6% of sales, tax code compliance costs at .6% of sales). A 2011 study by Laffer showed that overall income tax compliance costs for business totalled $162 billion for 2008.
Summarizing, American produced goods and services have a total income tax penalty of between 16% and 26% of sales price. This places a tremendous burden on American manufacturers, and make competition with imports difficult....

Most foreign countries have taxes that are comparable to our own, although our business taxes are the second highest in the world. In these countries, they use a combination of Value Added Taxes (VAT) and income taxes to finance their governments. And these taxes are applied to goods and services sold within that country.
But, almost all other countries have what is called a "border adjustment". Goods that are shipped out of the country have the taxes removed so the goods are essentiall "tax free". If the goods are shipped to and sold in another country that uses a VAT system, then the VAT is applied, and the goods are sold with the host countries VAT included in the price....

Since the US uses an income tax system, and does not have any border adjustment mechanism, imported goods can be sold in the US essentially tax free. The only taxes incorporated into the price of imports are the very small ones noted above.

http://www.ohfairtax.org/FAQ/PDF/Balance of Payments (import-export) 1960-2010.pdf
​

 

[JimBowie1958]

I'm sorry, but is that too much text for folks around here?

 

[Syriusly]

The freaking EU goombas are using a stealth tariff in the form of VAT taxes and tax forgiveness to advantage their exports like mad.

http://www.ohfairtax.org/FAQ/FAQImports.htm

American companies operate under a servere disadvantage compared to our foreign competitors. A company producing a good or service in the United States must pay the employer portion of the payroll tax, which amounts to 7.65% of their total labor costs. In addition, any company incorporated in the US, or private company owned by an American, must pay income tax on any profits realized when they sell their products or services in the US. This income tax may be as high as 35% of their net profit.
These costs are incorporated into the prices of the products and services, and passed along to their customers as embedded, or hidden, taxes. Taken together, these embedded taxes constitute anywhere from 15% to as high as 25% of the price charged for the manufactured good or provided serve.
In addition, because our tax code is so complex, requires extensive recordkeeping and documentation, and changes substantially from year to year, there is a significant compliance cost with operating a business in the United States. A combination of studies in 1993 and 2008 show that tax code compliance costs may be as high as 10% of business profits (Average profits of 6% of sales, tax code compliance costs at .6% of sales). A 2011 study by Laffer showed that overall income tax compliance costs for business totalled $162 billion for 2008.
Summarizing, American produced goods and services have a total income tax penalty of between 16% and 26% of sales price. This places a tremendous burden on American manufacturers, and make competition with imports difficult....

Most foreign countries have taxes that are comparable to our own, although our business taxes are the second highest in the world. In these countries, they use a combination of Value Added Taxes (VAT) and income taxes to finance their governments. And these taxes are applied to goods and services sold within that country.
But, almost all other countries have what is called a "border adjustment". Goods that are shipped out of the country have the taxes removed so the goods are essentiall "tax free". If the goods are shipped to and sold in another country that uses a VAT system, then the VAT is applied, and the goods are sold with the host countries VAT included in the price....

Since the US uses an income tax system, and does not have any border adjustment mechanism, imported goods can be sold in the US essentially tax free. The only taxes incorporated into the price of imports are the very small ones noted above.

http://www.ohfairtax.org/FAQ/PDF/Balance of Payments (import-export) 1960-2010.pdf
​

So many countries have a VAT tax.

That applies to everything sold in that country.

So if France produces cars in France and sells them in France- someone pays the VAT tax on the car.

If the United States ships a car to France- someone has to pay the VAT tax on the car.

Neutral on whether the goods are domestic or imported.

 

[Old Rocks]

So, our failure to adjust for VAT taxes justifies starting a trade war that could destroy the world economy and create the Second Great Republican Depression.

 

[busybee01]

The freaking EU goombas are using a stealth tariff in the form of VAT taxes and tax forgiveness to advantage their exports like mad.

http://www.ohfairtax.org/FAQ/FAQImports.htm

American companies operate under a servere disadvantage compared to our foreign competitors. A company producing a good or service in the United States must pay the employer portion of the payroll tax, which amounts to 7.65% of their total labor costs. In addition, any company incorporated in the US, or private company owned by an American, must pay income tax on any profits realized when they sell their products or services in the US. This income tax may be as high as 35% of their net profit.
These costs are incorporated into the prices of the products and services, and passed along to their customers as embedded, or hidden, taxes. Taken together, these embedded taxes constitute anywhere from 15% to as high as 25% of the price charged for the manufactured good or provided serve.
In addition, because our tax code is so complex, requires extensive recordkeeping and documentation, and changes substantially from year to year, there is a significant compliance cost with operating a business in the United States. A combination of studies in 1993 and 2008 show that tax code compliance costs may be as high as 10% of business profits (Average profits of 6% of sales, tax code compliance costs at .6% of sales). A 2011 study by Laffer showed that overall income tax compliance costs for business totalled $162 billion for 2008.
Summarizing, American produced goods and services have a total income tax penalty of between 16% and 26% of sales price. This places a tremendous burden on American manufacturers, and make competition with imports difficult....

Most foreign countries have taxes that are comparable to our own, although our business taxes are the second highest in the world. In these countries, they use a combination of Value Added Taxes (VAT) and income taxes to finance their governments. And these taxes are applied to goods and services sold within that country.
But, almost all other countries have what is called a "border adjustment". Goods that are shipped out of the country have the taxes removed so the goods are essentiall "tax free". If the goods are shipped to and sold in another country that uses a VAT system, then the VAT is applied, and the goods are sold with the host countries VAT included in the price....

Since the US uses an income tax system, and does not have any border adjustment mechanism, imported goods can be sold in the US essentially tax free. The only taxes incorporated into the price of imports are the very small ones noted above.

http://www.ohfairtax.org/FAQ/PDF/Balance of Payments (import-export) 1960-2010.pdf
​

You are complaining that Americans are not paying enough in taxes. I have bought many blu-rays and dvds overseas because the product is either available overseas but not in the US, the product overseas is better or the extras are more enticing. there are 2 things that you forget. The first is shipping which can be costly. The second is currency translation. The Euro is worth approximately 1.15 euros per dollar which means you pay a 15% premium. The pound is worth 1.30 pounds per dollar which means a 30% premium over list price. In Canada and Australia the dollar trades at a premium which means anything bought with the dollar trades at a discount to Americans.

 

[theHawk]

So, our failure to adjust for VAT taxes justifies starting a trade war that could destroy the world economy and create the Second Great Republican Depression.

President Trump is adjusting for it. You’re just too partisan to admit it’s a good thing.

 

[theHawk]

The freaking EU goombas are using a stealth tariff in the form of VAT taxes and tax forgiveness to advantage their exports like mad.

http://www.ohfairtax.org/FAQ/FAQImports.htm

American companies operate under a servere disadvantage compared to our foreign competitors. A company producing a good or service in the United States must pay the employer portion of the payroll tax, which amounts to 7.65% of their total labor costs. In addition, any company incorporated in the US, or private company owned by an American, must pay income tax on any profits realized when they sell their products or services in the US. This income tax may be as high as 35% of their net profit.
These costs are incorporated into the prices of the products and services, and passed along to their customers as embedded, or hidden, taxes. Taken together, these embedded taxes constitute anywhere from 15% to as high as 25% of the price charged for the manufactured good or provided serve.
In addition, because our tax code is so complex, requires extensive recordkeeping and documentation, and changes substantially from year to year, there is a significant compliance cost with operating a business in the United States. A combination of studies in 1993 and 2008 show that tax code compliance costs may be as high as 10% of business profits (Average profits of 6% of sales, tax code compliance costs at .6% of sales). A 2011 study by Laffer showed that overall income tax compliance costs for business totalled $162 billion for 2008.
Summarizing, American produced goods and services have a total income tax penalty of between 16% and 26% of sales price. This places a tremendous burden on American manufacturers, and make competition with imports difficult....

Most foreign countries have taxes that are comparable to our own, although our business taxes are the second highest in the world. In these countries, they use a combination of Value Added Taxes (VAT) and income taxes to finance their governments. And these taxes are applied to goods and services sold within that country.
But, almost all other countries have what is called a "border adjustment". Goods that are shipped out of the country have the taxes removed so the goods are essentiall "tax free". If the goods are shipped to and sold in another country that uses a VAT system, then the VAT is applied, and the goods are sold with the host countries VAT included in the price....

Since the US uses an income tax system, and does not have any border adjustment mechanism, imported goods can be sold in the US essentially tax free. The only taxes incorporated into the price of imports are the very small ones noted above.

http://www.ohfairtax.org/FAQ/PDF/Balance of Payments (import-export) 1960-2010.pdf
​

You are complaining that Americans are not paying enough in taxes. I have bought many blu-rays and dvds overseas because the product is either available overseas but not in the US, the product overseas is better or the extras are more enticing. there are 2 things that you forget. The first is shipping which can be costly. The second is currency translation. The Euro is worth approximately 1.15 euros per dollar which means you pay a 15% premium. The pound is worth 1.30 pounds per dollar which means a 30% premium over list price. In Canada and Australia the dollar trades at a premium which means anything bought with the dollar trades at a discount to Americans.

Exchange rates have nothing to do with it. It’s the fact they put a nearly 20% VAT on top of everything that makes Euro shit so expensive.

 

[flewism]

The freaking EU goombas are using a stealth tariff in the form of VAT taxes and tax forgiveness to advantage their exports like mad.

http://www.ohfairtax.org/FAQ/FAQImports.htm

American companies operate under a servere disadvantage compared to our foreign competitors. A company producing a good or service in the United States must pay the employer portion of the payroll tax, which amounts to 7.65% of their total labor costs. In addition, any company incorporated in the US, or private company owned by an American, must pay income tax on any profits realized when they sell their products or services in the US. This income tax may be as high as 35% of their net profit.
These costs are incorporated into the prices of the products and services, and passed along to their customers as embedded, or hidden, taxes. Taken together, these embedded taxes constitute anywhere from 15% to as high as 25% of the price charged for the manufactured good or provided serve.
In addition, because our tax code is so complex, requires extensive recordkeeping and documentation, and changes substantially from year to year, there is a significant compliance cost with operating a business in the United States. A combination of studies in 1993 and 2008 show that tax code compliance costs may be as high as 10% of business profits (Average profits of 6% of sales, tax code compliance costs at .6% of sales). A 2011 study by Laffer showed that overall income tax compliance costs for business totalled $162 billion for 2008.
Summarizing, American produced goods and services have a total income tax penalty of between 16% and 26% of sales price. This places a tremendous burden on American manufacturers, and make competition with imports difficult....

Most foreign countries have taxes that are comparable to our own, although our business taxes are the second highest in the world. In these countries, they use a combination of Value Added Taxes (VAT) and income taxes to finance their governments. And these taxes are applied to goods and services sold within that country.
But, almost all other countries have what is called a "border adjustment". Goods that are shipped out of the country have the taxes removed so the goods are essentiall "tax free". If the goods are shipped to and sold in another country that uses a VAT system, then the VAT is applied, and the goods are sold with the host countries VAT included in the price....

Since the US uses an income tax system, and does not have any border adjustment mechanism, imported goods can be sold in the US essentially tax free. The only taxes incorporated into the price of imports are the very small ones noted above.

http://www.ohfairtax.org/FAQ/PDF/Balance of Payments (import-export) 1960-2010.pdf
​

So many countries have a VAT tax.

That applies to everything sold in that country.

So if France produces cars in France and sells them in France- someone pays the VAT tax on the car.

If the United States ships a car to France- someone has to pay the VAT tax on the car.

Neutral on whether the goods are domestic or imported.

So if France exports cars for sale in the USA, France does not charge the VAT, and the USA charges 2.5% of value.

 

[Moonglow]

The freaking EU goombas are using a stealth tariff in the form of VAT taxes and tax forgiveness to advantage their exports like mad.

http://www.ohfairtax.org/FAQ/FAQImports.htm

American companies operate under a servere disadvantage compared to our foreign competitors. A company producing a good or service in the United States must pay the employer portion of the payroll tax, which amounts to 7.65% of their total labor costs. In addition, any company incorporated in the US, or private company owned by an American, must pay income tax on any profits realized when they sell their products or services in the US. This income tax may be as high as 35% of their net profit.
These costs are incorporated into the prices of the products and services, and passed along to their customers as embedded, or hidden, taxes. Taken together, these embedded taxes constitute anywhere from 15% to as high as 25% of the price charged for the manufactured good or provided serve.
In addition, because our tax code is so complex, requires extensive recordkeeping and documentation, and changes substantially from year to year, there is a significant compliance cost with operating a business in the United States. A combination of studies in 1993 and 2008 show that tax code compliance costs may be as high as 10% of business profits (Average profits of 6% of sales, tax code compliance costs at .6% of sales). A 2011 study by Laffer showed that overall income tax compliance costs for business totalled $162 billion for 2008.
Summarizing, American produced goods and services have a total income tax penalty of between 16% and 26% of sales price. This places a tremendous burden on American manufacturers, and make competition with imports difficult....

Most foreign countries have taxes that are comparable to our own, although our business taxes are the second highest in the world. In these countries, they use a combination of Value Added Taxes (VAT) and income taxes to finance their governments. And these taxes are applied to goods and services sold within that country.
But, almost all other countries have what is called a "border adjustment". Goods that are shipped out of the country have the taxes removed so the goods are essentiall "tax free". If the goods are shipped to and sold in another country that uses a VAT system, then the VAT is applied, and the goods are sold with the host countries VAT included in the price....

Since the US uses an income tax system, and does not have any border adjustment mechanism, imported goods can be sold in the US essentially tax free. The only taxes incorporated into the price of imports are the very small ones noted above.

http://www.ohfairtax.org/FAQ/PDF/Balance of Payments (import-export) 1960-2010.pdf
​

And sales tax, then states tax individuals for buying out of state.

 

[JimBowie1958]

You are complaining that Americans are not paying enough in taxes. I have bought many blu-rays and dvds overseas because the product is either available overseas but not in the US, the product overseas is better or the extras are more enticing. there are 2 things that you forget. The first is shipping which can be costly. The second is currency translation. The Euro is worth approximately 1.15 euros per dollar which means you pay a 15% premium. The pound is worth 1.30 pounds per dollar which means a 30% premium over list price. In Canada and Australia the dollar trades at a premium which means anything bought with the dollar trades at a discount to Americans.

That is simply false as the exchange rate is already worked into the price structure. Only values changed as the items are shipped go into the cost of the imported items and it is usually in tens of thousandths of a dollar, aka 'pips'.

 

[JimBowie1958]

So if France produces cars in France and sells them in France- someone pays the VAT tax on the car.

If the United States ships a car to France- someone has to pay the VAT tax on the car.

Neutral on whether the goods are domestic or imported.

So if France exports cars for sale in the USA, France does not charge the VAT, and the USA charges 2.5% of value.

1. Sytrriously has no idea of what he is talking about. The only time an EU member pays the VAT is when they buy the domestic product or an import.

2. So the EU is subsidizing their exports while putting an effective tariff on our imports to the EU in the form of us paying the VAT on what we import to the EU.