Week of April 21, 2025
As of January 25, 2025, 175 of the 193 United Nations member countries had a value-added tax (VAT), according to Wikipedia. The United States remains one of the few without such a system. Tariffs share several characteristics with VATs—particularly in their role as sources of government revenue. In both cases, the final consumer typically bears the cost of the tax. In the context of the ongoing debate over the Trump tariff proposals, it is useful to ponder these two types of tax systems. Perhaps a name change is in order? Our Signals remain unchanged.
Bob Bilkie, CFA
