Comment by consumer451
5 days ago
In practice, isn't this just a blanket federal sales tax/VAT? Isn't that inflationary?
I am curious, what do you see as the benefit of this style of taxation?
5 days ago
In practice, isn't this just a blanket federal sales tax/VAT? Isn't that inflationary?
I am curious, what do you see as the benefit of this style of taxation?
Potentially inflationary yes but would correct the current account deficit and some of the other imbalances (lack of blue collar jobs, excessive financialisation, income inequality) that accompany it.
Not the best way but not completely stupid either.
If you’re interested in this perspective look up Michael Pettis’s work, he explains it better than me.
To be clear, I’m not defending trump, I think he is an idiot. This would be a “stopped clock is right twice a day” situation if he ends up doing it