Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Katelew who wrote (4954)	1/6/2017 11:49:24 AM
From: TimF	Respond to of 362000

You were responding to the question about whether increasing the sales tax in the US to 20% would greatly reduce the US's trade deficit. You responded -"I think if the sales tax was 20% AND the EU car maker 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." Which seems to imply that the EU car makers wouldn't be impacted by such a tax. I pointed out that they would be. (Or to make it less hypothetical, there is a lesser, and less consistent impact from the current patchwork of different sales taxes across the US.). If you wondering why I asked the original question, I thought it was pretty obvious in context. If having a higher rate for sales/VAT taxes would reduce trade deficits (or cause or increase a surplus) then it would seem that moving the US's rate to 20 percent would at least greatly shrink the trade deficit, but I don't think it would. Your answer wasn't entirely clear but I think you think it would. Anyone else have an opinion on this (preferably an opinion with an explanation)?