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Politics : The Trump Presidency
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To: bentway who wrote (4716)1/4/2017 9:34:32 PM
From: KyrosL  Read Replies (2) of 356263
 
The main reason a VAT country has a trade advantage over a non-VAT country is because the tax on consumption in the VAT country decreases the propensity to consume compared to the non-VAT country. Therefore, the people in the VAT country consume less, so it is far more likely the VAT country runs a trade surplus with the non-VAT country.
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