So if you buy a capital item like a building or a locomotive or even an automobile, that is built up of many components and subassemlies, minor and major, fabricated by various providers (or divisions?) you pay transaction tax on every bolt, brick, wire or semiconductor, the labor to make it, the payroll contractor of each provider, etc. and the labor to make them into, say, an alternator. Then you pay a transaction tax on each part, unit of labor, and subcontracted service again, when an assembler acquires the alternator and puts it on an engine. Then you pay a tax on all of that again, when you ship the engine to a final assember to make a vehicle. So now you've paid a tax on every bolt at least three times, plus a tax on the tax and a tax on the tax on the tax assessed on the original component. Voila, 0.24% turns out to be the same big bucks we pay now. It's all just hidden from view. The legislature can raise taxes anytime it wants, and no one notices. Just the price of every good and service goes up. No accountability. Sweet.
This tax scheme would tax internally produced items going into a car differently from those bought from other companies. Thus Delphi would need to become Delco again. It really screws up the valuation of goods. The cost of an item depends on its provenance.