On Sun, 20 Jul 2003 04:36:43 GMT, "Ed Huntress"
wrote:

(BTW, to figure out where we are without a VAT, consider that our state and
local sales taxes are close to the same thing, although much lower in
percentage. Italy's VAT is the highest or close to it, at something like
22%. Most of Europe is under 20%. China is 17%. But here's the kicker: When
you have a VAT and your trading partner doesn't, like the US, your VAT
amounts to an export subsidy that you don't have to declare. If this is
confusing, I'll explain.)

What you're saying is the the exporting country looses revenue because
it's taxes are not in the production of the item but in it's sale, a
tax not collected since it was not a retail sale?

John

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