It’s not that complicated once you’re inside the system and using it. Everyone from the initial supplier to the retailer in a product chain charges their buyer(s) the tax. The manufacturer buys raw materials and is charged the tax by the supplier of the raw materials. He transforms raw materials into a product, sells the product to a distributor and charges the tax. The manufacturer is required to remit the tax he received on his sale but he’s allowed to first deduct the tax he paid when he bought the raw materials. In theory and, typically in practice, and because of market forces, he does this before setting his selling price to the distributor.
The distributor arranges to transport the manufactured product to wholesalers for a price and the distributor charges the tax on that price. He remits the tax on the distributed goods to the feds and is allowed to deduct the tax he paid to the manufacturer. And so it goes through the complete supply chain with the tax never being passed on. The final consumer is the one who bears the entire tax burden with the intermediaries paying tax only on the value that was added in each previous step.
It would be nice if the manufacturer could sell directly to the consumer and eliminate all the “value” added in between.
Donald J. Trump
President’s Public Schedule
Schedule updates at midnight Eastern Time, or when pushed out via social media, whichever is earlier. Calendar maintained in U.S.
Saturday, March 1 2025
7:00 AM
Out-of-Town Pool Call Time
Out-of-Town Pool
7:00 PM
The President attends the MAGA INC. Candlelight Finance Dinner
Mar-a-Lago Closed Press
Roll Call
https://rollcall.com/factbase/trump/topic/calendar/