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Where I live you only pay sales taxes at the retail level - companies earlier on in the supply chain don't pay anything. I think that's pretty standard, actual
by tsotha 16y ago
Where I live you only pay sales taxes at the retail level - companies earlier on in the supply chain don't pay anything. I think that's pretty standard, actually, and for the reasons you discussed.
Or were you talking about some other kind of tax?
- stretchwithme 16y agobingo. Companies that only trade with companies still pay income taxes on their profits, at least here in the US. Not sure how big an effect this is or it has been studied at all. I guess the costs of doing business with another entity should also be considered and maybe they are more significant. Just having to evaluate vendors, do POs, trying to collect, etc, are also costs avoided inhouse.