Democratic presidential hopeful Andrew Yang doesn't believe his proposed value-added tax, or VAT, on companies in the United States would drive business out of the country, he told MSNBC's"Morning Joe" on Monday."There's really no place for them to go," Yang said, noting that"every other advanced economy" already has a VAT that's higher than the one he's proposing.
Yang said the tax would help pay for his plan to give every American adult between the ages of 18 to 64 a monthly $1,000 stipend. Yang claims there is a need for a universal basic income as artificial intelligence threatens to put a third of Americans at risk of permanent unemployment."This is the trickle-up economy, not the trickle-down economy," Yang said.
Yang used Amazon as an example as to why the U.S. should enforce a value added tax. He said Amazon, which is one of the most valuable public company in the world, should not be paying $0 in taxes. This is the second year in a row the company has paid nothing in federal taxes.Amazon noted in a recent company filing that it will pay $756 million in state and international taxes this year.
Yang said the United States is the No. 1 market in the world, and if companies want to sell their products here"they have to pay their fair share."
His proposal is to use VAT to fund a freedom dividend of $1,000 per month for every US citizen over 18. For a family of four, this means $24K benefit. Say the price raises by 10%. You need to consume $240K to offset the benefit.
Good reason to raise prices.
Maybe companies wont but consumers will pay VAT tax just like Canada. Typical democrat only looks to raise taxes and NEVER looks at ways to cut cost to raise money. Trumps budget is perfect example. He must many good cuts (I’m not saying all cuts) But Dems say dead on arrival