Which exports are taxed twice?

Question

During the republican debate at the Regan Library, there was at least one mention of the fact that our country is losing jobs due to the fact that there is a double tax on our exports while other countries export to the U.S. with no tax (tariff) or a tax at a lower rate. Moreover, this double-tax resulted from a trade agreement the U.S. signed, but don't know which one(s).

I'm mostly interested in finding out about the taxation of our exports. Thanks in advance.

Answer 1

imported beer maybe

Answer 2

They are referring to the fact that many countries have a value added tax or VAT in addition to income taxes. It has the effect of a sales tax and is usually around 20%, and is used for the same purposes as income taxes. The tax is imposed on imports but exports do not have to pay the tax. This means our exports pay income tax here and VAT tax there, taxed twice, but our imports only pay income tax in their home countries.

Most states in the US imposes sales taxes which work the same way. Imports to the state are taxed because they are sold in the state, but out of state sales are not because the are not sold in the state.

Answer 3

i think mostly because of cost of delivery and service and shipment.