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It is. It's a targeted expenditure (vs. a lower sales tax rate overall) but IANAL.


For a company with international sales, sales tax (and VAT) should be handled in the district where the sale occurs, not where the product is manufactured. The big problem with the USA is that it doesn't have a VAT system in place to make it all work out equitably.


Unless I'm misunderstanding your point, I think it still works out equitably regardless of the existence of a VAT system.




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