A system that gives the government $1 for a painted coconut is better than a system that gives the government $3.52 for a painted coconut, certainly. Except for

A system that gives the government $1 for a painted coconut is better than a system that gives the government $3.52 for a painted coconut, certainly. Except for the government! In reality, sales taxes tend to be half as large or less and are usually not actually paid on raw good for resale by resellers, so the difference isn't quite as stark, but it is odd that no mention is made of the difference in government revenue, since the government is the entity actaully imposing the taxes!