The Trump administration's proposal for 'reciprocal' tariffs based on perceived unfair trade practices, including the EU's VAT system, reflects a misunderstanding of how value-added taxes work. The real competitiveness issues stem from flaws in the US federal and state tax systems, particularly the problematic design of state sales taxes that create tax pyramiding.

https://taxfoundation.org/blog/trump-reciprocal-tariffs-eu-vat-discriminatory/

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