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A car or other motor vehicle imported to Germany from outside the EU is normally subject to a 10% import duty and a 19% import value added tax. (The value-added tax on imports is called import turnover tax (Einfuhrumsatzsteuer).
If you bought a German car in Germany wouldn’t the value added tax you pay as a German consumer also be 19%?
If you bought a German car in Germany wouldn’t the value added tax you pay as a German consumer also be 19%?
Yes. All Germans pay VAT. However they are not paying any embedded corporate taxes like we do.
If an American buy American, it all equals out.
If a German buys German(or any VAT country), it all equals out.
If an American buys a German car, they pay no VAT, and the German company pays no corporate tax. Its essentially tax free on both side of the equation.
If a German buys an American car, they pay the corporate tax and the VAT. Its taxed on both sides of the equation.
I'll tell you what, with your genius logic, how about you send me $3,470 worth of goods and in return I will send you $161 worth of services. This will be a great deal for you!!!
The honest truth is, had Bernie won or had this conversation taken place back when Obama complained about this you would have your argument better mesh with reality. Trump is making the argument so you spin to an alternate reality for partisan gain.
Oh, so thats what you dont understand. You think goods and services are bought by exported goods and services. Thats like you refusing to buy at your local grocery store because you get hundreds of dollars worth of goods and the store gets no goods back from you.
A car or other motor vehicle imported to Germany from outside the EU is normally subject to a 10% import duty and a 19% import value added tax. (The value-added tax on imports is called import turnover tax (Einfuhrumsatzsteuer).
Please dont bring VAT into this. VAT tax is imposed on German made products in Germany as well. Its not targeted.
If Germany, South Korea and Japan can have a trade surplus with China, then so can we, if we are really interested in that. But we're not. Its not like Japan is booming like crazy just because it has a trade surplus with China. Its been largely stagnant for 20 years now. The same will be the case with the US. I can guarantee you that you wont notice any difference whether we have a trade surplus of trade deficit with China.
It was supposed to be a good year for farmers, many of them have been investing based on the projections for the coming year so it will be a double to have poured concrete only to find the market for Pork is not so juicy...
REMEMBER TRUMPY FOLK..... "trade wars are easy"...Donald Trump
Anyone wonder why China, with a huge agricultural sector, and vast arable land, would need to buy soybeans from us...especially since its a staple in Chinese diet..
Yes. All Germans pay VAT. However they are not paying any embedded corporate taxes like we do.
If an American buy American, it all equals out.
If a German buys German(or any VAT country), it all equals out.
If an American buys a German car, they pay no VAT, and the German company pays no corporate tax. Its essentially tax free on both side of the equation.
If a German buys an American car, they pay the corporate tax and the VAT. Its taxed on both sides of the equation.
Please dont bring VAT into this. VAT tax is imposed on German made products in Germany as well. Its not targeted.
Call it collateral damage if you like. The interaction of the tax systems is what it is. US exports pay US taxes and VAT taxes. VAT countries pay no taxes. Its as simple as that. That's the reality intentional or not.
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If Germany, South Korea and Japan can have a trade surplus with China, then so can we, if we are really interested in that.
And all those are VAT countries , so if birds can fly so can frogs....whoops
And the other problem is that we export dollars as the reserve currency. Its good for banking but it does cause a form of Dutch disease in the US.
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But we're not. Its not like Japan is booming like crazy just because it has a trade surplus with China. Its been largely stagnant for 20 years now. The same will be the case with the US. I can guarantee you that you wont notice any difference whether we have a trade surplus of trade deficit with China.
Japan is stagnant for its own reasons. One of them is demographics, but their idiot sales tax increase proves that some politicians around the world are even dumber than ours. Their debt to GDP ratio is nothing but a Japanese consumers refusing to take on debt.
As for making a difference, economics is all about the margins.
But anyway in the long term the Chinese middle class and the rising rentier class would eventually solve most of the problems. However that structural problem with our tax and VAT is annoying.
Call it collateral damage if you like. The interaction of the tax systems is what it is. US exports pay US taxes and VAT taxes. VAT countries pay no taxes. Its as simple as that. That's the reality intentional or not.
And all those are VAT countries , so if birds can fly so can frogs....whoops
And the other problem is that we export dollars as the reserve currency. Its good for banking but it does cause a form of Dutch disease in the US.
Japan is stagnant for its own reasons. One of them is demographics, but their idiot sales tax increase proves that some politicians around the world are even dumber than ours. Their debt to GDP ratio is nothing but a Japanese consumers refusing to take on debt.
As for making a difference, economics is all about the margins.
But anyway in the long term the Chinese middle class and the rising rentier class would eventually solve most of the problems. However that structural problem with our tax and VAT is annoying.
You dont make a proper argument though. Clearly, a trade surplus with China is nothing special. Countless countries have it, and they are either slow growing, moderate growing or fast growing. Its nothing special.
Regarding VAT tax, you dont make sense. All producers pay VAT taxes in Germany, Japan etc, regardless of where the product is produced. Its a level playing field. VAT has nothing to do with trade surplus with China.
Oh, so thats what you dont understand. You think goods and services are bought by exported goods and services. Thats like you refusing to buy at your local grocery store because you get hundreds of dollars worth of goods and the store gets no goods back from you.
I didn't say that. You are dodging my point, because your initial point was pure partisan BS.
The service surplus with China you crowed about is one tenth the goods deficit. It hasn't been self correcting to any reasonable degree.
You dodged, because your point was as hollow as your position on this topic. You would be taking my same position had Bernie won.
200 Billion more in tariffs on China ratcheting up the tradewar. So far the only effect from the prior ones has been to increase the trade imbalance. But honestly, does anyone else think this is just more chaos to distract from Mueller? I think Trumps going for maximum distraction before attempting to fire him. I don't think its going to work. I feel like we're coming to the end. Could be wrong, but the flailing seems to be increasing.
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Another 200 billion in tariffs on China. Anyone else think its just more distraction?
