3 ms·
It makes small businesses even less competitive against large companies. Consider a few businesses. One owns an oil well. One owns a refinery. One owns a gas st
by slavik81 10y ago
It makes small businesses even less competitive against large companies. Consider a few businesses. One owns an oil well. One owns a refinery. One owns a gas station.
The oil well sells 100L of crude oil to the refinery for $100 and pays $1.5 in tax. The refinery sells 100L of gasoline to the gas station for $200 and pays $3 in tax. The gas station sells 100L of gasoline to the consumer for $300 and pays $4.5 in tax. Total: $9 in tax.
BigCo owns an oil well, oil refinery and gas station. The only time money changes hands is when they sell 100L of gasoline to the consumer for $300 and pay $4.5 in tax.