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The Value Added Tax (which is the way sales taxes are structured in most of Europe) only taxes the sale to the final (non-business) consumer. The length of the
by jsnell 5y ago
The Value Added Tax (which is the way sales taxes are structured in most of Europe) only taxes the sale to the final (non-business) consumer. The length of the supply chain doesn't matter, the aggregate tax burden will only depend on the price of the final product.
- murderfs 5y agoYes, but that's not what the original poster proposed! "Just do a flat x% tax on every dollar of revenue. That's it. Forget income, loss, expenses, tariffs, etc etc." The way that VAT is implemented is that every intermediate pays VAT, but gets a credit for the VAT that they paid.