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To: Your Nightmare
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.

257 posted on 11/04/2004 7:21:38 AM PST by kevkrom (Power corrupts. Absolute power corrupts absolutely. But it rocks absolutely, too.)
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To: kevkrom
So a product that could be sold at retail or wholesale (eg. a hard drive, tires, etc.) doesn't have the embedded taxes?

And how are export prices suppose to fall if the "hidden fed tax costs" are just in products sold at retail?
258 posted on 11/04/2004 7:40:05 AM PST by Your Nightmare
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To: kevkrom

From past experience it's the former -- not to mention the synchronous screen name.


259 posted on 11/04/2004 7:44:38 AM PST by Zon
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To: kevkrom
The point is that each stage of production adds more and more embedded tax,

So ten companies in the production chain with a 10% tax rate would increase the price by 100%?...or would it be 10%?

263 posted on 11/04/2004 8:10:01 AM PST by lewislynn (The meaning of life can be described in one word...Grandchildren)
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