Embedded tax costs are the income taxes paid by businesses of all sorts as well as higher prices for everything THEY buy - and that cascade as things progress from inception to final consumption.Could you please show me an example of how business income taxes cascade from level to level? Thank you.
Company A extracts raw materials and sells them. They pay tax on their income, and for withholding, and compliance. These expenses are calculated and included in the price of the raw materials sold.
Company B purchases raw materials from Company A and converts them (for lack of a better term) to initial stage product bought in bulk by company C. Company B has to pay tax on the income, along with witholding on employees and compliance. These expenses are added to the price of their product. Now we have 2 levels of taxation included in the price of a still yet to come to market good.
Company C turns the purchased material into a widget. Retailers D thru Z purchase said widgets for sale in their stores. Company C has now included their tax, withholding, and compliance expense in the price of the widget they sell to retailers. 3 levels of taxation addition in price now.
And finally the retailers sell the widget to the final consumer. They too ad their tax, withholding, and compliance costs into the retail price. That gives us 4 levels.
In all likelyhood, 4 levels is about as low as you can get to get a material from the ground to the shelf at your local ShopMart.
It was embedded tax costs, not just embedded taxes - and surely with your wide reading and study you have seen examples of this, haven't you?