Pelosi argued that the VAT would level the playing field between U.S. and foreign manufacturers, the latter of which do not have pension and healthcare costs included in the price of their goods because their government provide those services, financed by similar taxes.
“They get a tax off of that and they use that money to pay the health care for their own workers,” Pelosi said, using the example of auto manufacturers. “So their cars coming into our country don’t have a health care component cost.”
“Somewhere along the way, a value-added tax plays into this. Of course, we want to take down the health care cost, that’s one part of it,” the speaker added. “But in the scheme of things, I think it’s fair look at a value- added tax as well.”