Comment by nachomg
7 days ago
This doesn't make any sense.
European companies pay VAT in Europe. American companies pay VAT in Europe. European companies do not pay VAT in US. American companies do not pay VAT in US.
Where is the unfair competition?
7 days ago
This doesn't make any sense.
European companies pay VAT in Europe. American companies pay VAT in Europe. European companies do not pay VAT in US. American companies do not pay VAT in US.
Where is the unfair competition?
I'm literally quoting you:
> "American companies pay VAT in Europe. European companies do not pay VAT in US."
VAT is a significant income stream for the EU. They take that money and re-invest it into their economy in an uncompetitive manner, whilst constantly propping up more anti-competitive regulation (which harms American businesses).
Have you looked at EU countries budgets? We "invest" in social security and public health systems. Our defense budgets go in large part to buy arms from the US, and Musk complains if we decide to prop up Arianespace for some defense satellites while threatening to cutoff Starlink for Ukraine paid by Poland. Have you looked at how much money your DoD sends abroad (and how much of it is pork)? You're literally telling us to be more protectionist, and then expect something different.
I don't really care what you invest the money into, the point is that the VAT is a mechanism which messes with the concept of a free global market and it leads to unfair competition and an unleveled playing field. If you combine it with other factors (such as the fact that the US is the sole guarantor of Europe's defense) - the US is in the right for challenging the European economy.
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American companies pay VAT in Europe. European companies pay VAT in Europe.
American companies do not pay VAT in in the US. European companies do not pay VAT in the US.
American companies pay sales tax in the US. European companies pay sales tax in the US.
US sales tax is *significantly* lower than VAT, varies by state (allowing for all kinds of loopholes), and applies to fewer categories of products and services sold. No point arguing this, VAT is a protectionist and anti-competitive tax and the US has a right to challenge it.
Why are you arguing this point? It’s de-facto cheaper and easier for European companies to compete in the American markets, than the other way around.
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