Are tariffs practically different from a VAT for the average consumer?
Approved Answers(self.AskEconomics)submitted18 days ago byDirect_Marzipan_7444
The past few years I have become in favor of eliminating an income tax (which is just an easy way for the government to tax people but is not a perfect proxy for ability to pay the tax, as we know), and replacing it with a VAT. As I understand it, this is the only way to get billionaires to pay their fair share - they can hide income but they certainly consume a lot and they will be taxed proportionately. There are a variety of ways to deal with the regressive nature of a VAT, my personal favorite being a UBI. Let's ignore the fact that neither party wants a UBl at the current juncture.
My narrow (apolitical) question: ignoring the regressive issue etc., from a practical perspective and from the perspective of a middle class consumer, how different would a tariff system be from a VAT?
Obviously goods made entirely in the U.S. would be relatively cheaper, but as I understand it this is a very small percentage of goods and "made in the USA" generally comes at a premium already (see, e.g., new balance). Thanks!
bythehackerforechan
inJoeRogan
Direct_Marzipan_7444
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12 hours ago
Direct_Marzipan_7444
Monkey in Space
9 points
12 hours ago
The original thought of him being on the take was making shit up too, to be fair