[lewislynn]

The flip side would be that the longer the production chain, the higher the embedded taxes

Using that logic something with thousands of components, like a car, would have HUGE price reductions.

Is the embedded tax of 10% on 100 bolts from one manufacturer and the 10% embedded tax on 100 nuts from a different manufacturer and 10% emedded tax from the manufacturer of 100 steering wheels 30% embedded tax or is it 10%?

[Principled]

You need an 8th grade math class.

[phil_will1]

"The flip side would be that the longer the production chain, the higher the embedded taxes"

"Using that logic something with thousands of components, like a car, would have HUGE price reductions."

You obviously don't understand the concept of a production chain. It is the number of steps that a product must pass through, IOW the number of corporate entities that add their corporate income taxes and payroll taxes to the price they pass up to the next level.

Question: If 1,000,000 items are produced from scratch from 500,000 different producers and sold to a single producer who incorporates them into a single product that it then sells to the end user, how many stages are there in the production chain?
(a) one
(b) two
(c) 500,000
(d) 1,000,000