[csmpltn]

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.

[jbeam]

How is it protectionist if the European companies also pay it?

You are arguing about rules that apply to all companies competing in Europe and then extrapolating that to say that “American companies competing in Europe” are mistreated.

[csmpltn]

Are you saying the VAT doesn't benefit Europe and European economies (both directly and indirectly)?

[olejorgenb]

If I read you correctly you're saying that a tax imposed on the consumers in a country benefits the country as a whole and thus aslo the companies operating in that country, which make it unfair to foreign companies? Is that really what you're arguing?

[jbeam]

I’m saying the VAT is not protectionist.

[csmpltn]

We started this conversation with you seemingly not understanding how VAT messes with free trade, and it sounds to me like you're in a different place now. Feel free to keep arguing over semantics all day long, I'll leave it at that.

[jbeam]

My place hasn’t changed at all. Everything I’ve said is internally consistent. You are welcome to view any form of taxation as an impediment to “free trade” but that’s not how competition works. Feel free to continue believing that taxation is inherently protectionist, I’ll leave it at that.

[csmpltn]

There's "taxation", and then there is "taxation". VAT is an incredibly aggressive and overreaching version of "taxation", and it has severe implications on free trade with Europe. I'm not sure why you won't acknowledge this.

And by the way - plenty of economists view taxation as impediment to free trade.

[olejorgenb]

How is it easier for the European companies to compete when the US companies have the same conditions?

Not everyone is an expert in this field. If you are, I'm sure you can provide a more understandable explanation.

It's not obvious to me that the different rates of sales tax/vat matter for competitio either. An example is worth thousand words here...