How do products sold at retail have a higher "hidden fed tax costs" than products not?
Are you really this dense, or are you just trying to stir up trouble?
Products not sold at retail are used to produce other goods and services, which eventually are sold at retail. All the taxes embedded in that production chain still exist, and that cascading effect is what causes the retail price to be inflated by as much as it is. The point is that each stage of production adds more and more embedded tax, which is eventually borne by the consumer.