How would Sensible Tax Reform affect foreign visitors to the U.S.?
Foreign visitors to the U.S. will be treated just like American residents will be: They will be charged the FCT on all of their purchases. Most foreign countries charge a national consumption tax on all purchases–the value-added tax (VAT). Americans traveling abroad on business or vacations are subject to those taxes on everything that they purchase abroad. Foreign visitors here will thus be treated just as American visitors are treated abroad. There will be a procedure for a rebate of the tax (or part of it) on purchases of large items that foreign visitors take with them or ship home (e.g., clothes or electronics). This will be similar to how most countries with VATs treat Americans traveling in their countries. This would be consistent with STR principles of equity and consistency, since such purchases by foreigners are actually exports. Sensible Tax Reform will not tax any exports.
