I wonder if Donald Trump appreciates that UK - and indeed European - individuals and businesses also pay VAT on goods and services from China. It is a level playing field.
The US has had a 25% tariff on light trucks imported to the U.S. since 1964
The Chicken Tax is a 25% tariff on light trucks imported to the U.S. The United States imposed the tariff in 1964 through an executive order issued by President Lyndon Johnson
The answer is let’s (Uk) abandon VAT & IHT .What a vote winner that would be.I am sure we will find another way to recoup the money .After all the British are experts in finding ways to part with your Money .We could charge an entrance fee by all people entering Uk
Imagine that a country (let's call it Wakanda) needs to raise $1bn from tax. It could raise taxes on labour (e.g. income tax), taxes on capital (e.g. - broadly - corporate tax), or taxes consumption (VAT).
Raising taxes on capital increases production costs for Wakandan companies.
Investors in Wakanda (foreign or domestic) need to either accept a reduced return, invest in another country, or increase prices (in the long term they could also cut wages)
I'm struggling to believe that Napoleon Bone-spurs is so dim-witted that he thinks VAT is a tariff, we charge it on the goods we make in our own countries FFS!
Much more limited in scope, and my understanding is that typically it's only at final point of sale, so the consumer bears the full tax burden. Probably why it's so unpopular there. If you tried to explain VAT to a US citizen I expect they'd find it difficult to understand.
Comments
The Chicken Tax is a 25% tariff on light trucks imported to the U.S. The United States imposed the tariff in 1964 through an executive order issued by President Lyndon Johnson
Same deal
Cars made in the UK don't face a tariff, even if made by a US-owned business.
Tariffs *are* discriminatory. That's the point.
VAT is charged on stuff *consumed* in the UK, no matter where it comes from. VAT isn't discriminatory - that's the point.
But:
Investors in Wakanda (foreign or domestic) need to either accept a reduced return, invest in another country, or increase prices (in the long term they could also cut wages)