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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: Katelew who wrote (4919)	1/5/2017 7:19:21 PM
From: TimF	Read Replies (1) \| Respond to of 361881

I think if the sales tax was 20% AND the EU carmaker had to pay it (like the US car maker has to pay the VAT), the US car makers would sell more cars in the US It does have to pay it, or I should say it would have to pay it if there was a national 20% sales tax, to the same extent that the US company has to pay the VAT. The tax is on the transaction. Who actually writes the check doesn't change the end result much. Just as the "employer's contribution" to Social Security reduces your take home pay by essentially the same amount as the "employee contribution". Yes the manufacturer may be one level further removed, since most cars in the US are sold by independent dealers. But if the dealer makes less money, they will be willing to pay less for cars to the manufacturer.