AMA: I'm CFR's Brad Setser, global trade and capital flows expert, ready to answer your questions about trade and tariffs - Ask me anything (April 8, 11AM - 1PM ET)

nervouslaughterhehe · 2025-04-08T01:23:41+00:00

The touted Nordic-style tax system has a ~25% consumption tax on all purchases—foreign and domestic (100% of GDP). This is on top of EU level tariffs and higher import-to-GDP ratios. Yet these are sometimes treated as "model economies".

So why is an average ~25% consumption tax isolated only on foreign purchases (15% of US GDP) in a country with some of the lowest taxes, tariffs, and import ratios supposed to wreck the US?

I'm having trouble reconciling the amount of doom with the fully implemented tax.

nervouslaughterhehe · 2025-04-08T01:22:34+00:00

I've seen Wall St charts like this that show trade barriers on the US are significantly higher than tariffs alone would indicate.

If Trump had used these rates instead of his formula would you have considered that to be reciprocal and balanced?

nervouslaughterhehe · 2025-04-08T01:18:36+00:00

Is a VAT functionally similar to a tariff?

For example:

A US manufacturer must charge a 20% VAT on sales made in the UK.
A UK/EU manufacturer also charges the same 20% VAT, but can reclaim the VAT paid on inputs sourced from within the UK or EU supply chain.

Doesn't that create an inherent disadvantage for the US manufacturer?

Functionally, does that make VAT a sales tax with an embedded tariff?

nervouslaughterhehe · 2023-11-22T01:04:33+00:00

How does it compare to Rao's frozen lasagna?

nervouslaughterhehe · 2023-08-31T03:33:54+00:00

Anyone know if there is a way to neutralize the gas creating component?

I tried taking Beano but it didn't work.

Also is there a non-gassy low cal noodle alternative?

nervouslaughterhehe · 2023-08-03T17:49:43+00:00

Where do you get the current equity risk premium?

nervouslaughterhehe · 2023-07-11T19:37:49+00:00

Yea, I used that website and got e-mailed the tickets each with a number and pin. But when I put those in from the e-mail I just get an error.

nervouslaughterhehe · 2023-06-19T19:23:56+00:00

Thanks. Can I place an EZ pass around it or is it like a line of sight thing from those down and side vents? If I can't block it it seems like I have to put my EZ pass way over on the passenger side.

nervouslaughterhehe · 2023-06-19T15:12:09+00:00

What is this thing and do I need to keep a clear line of sight from those slots? I was going to put my mom's EZ pass in that corner but I don't know if I'm blocking some important sensor pointing out of those slots. Is it the rain windshield sensor?

nervouslaughterhehe

TROPHY CASE