Quote Originally Posted by Rucker61 View Post
Does the US business that sells consumer goods pay any sales tax for goods purchased overseas?

Do you mean on the materials they are using to produce their products? And do you mean in the system I'm proposing? If so, I would think not, regardless of the source of those materials. Consumption tax only gets applied at the end user point. And the domestic advantage would still exist.



Does the US produced goods produced with sales taxes on all of the goods and PPE used to create the products and using American labor costs compete on a price basis with goods produced overseas with cheap labor and no sales tax on goods?
I see what you're thinking, Rucker, but read my answer above. It should address your question/concern. The advantage the consumption tax system provides to the American producer when selling their products domestically would be very helpful to them in competing with producers who have the advantage of lower labor costs.