It's called a "value added tax", or VAT. Common in the EU and other places.
Dan
NO! A VAT is insidious. VAT is added every time a raw material,
part or component is handled. A flat tax on income is direct and
understandable. A tax on retail sales is also direct and
understandable.
VAT greatly favors vertically integrated companies., as they start
with raw ingredients and if they sell directly at retail, there are
only two VATs on the finished product, on raw materials, and again on
the retail sale. Take an auto for example. Many tiers of suppliers,
each with several levels of VAT. The VAT becomes a MAJOR component
of the retail price.
VAT sucks bigtime. It is a big reason why you don't buy a lot of
products from UK and former crown colonies, who nearly all have VAT
taxes, driving up prices. Is this why Hendrik has to pay obnoxious
prices for parts?
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