That is to say it is at every stage of production and distribution. It is a tax on tax. For example resin, rubber and carbon black are necessary for manufacturing a tyre[sic]. All the three inputs paid tax and the final products, namely the tyre[sic] also paid tax.His description is actually quite good, as is this one:
Well, not really here's a better one
let's say the seller has a good margin of 25% on sales or $25 on the drug dealer's resin $100. Of this $25, only a small portion would ever possibly end up as tax revenue since the tax on the $25 profit would likely be something like the 15% rate - or $25 x 0.15 = $3.75.
Now let's say the seller has a good margin of 25% on sales or $25 on the drug dealer's rubber $100. Of this $25, only a small portion would ever possibly end up as tax revenue since the tax on the $25 profit would likely be something like the 15% rate - or $25 x 0.15 = $3.75.
Now let's say the seller has a good margin of 25% on sales or $25 on the drug dealer's carbon black $100. Of this $25, only a small portion would ever possibly end up as tax revenue since the tax on the $25 profit would likely be something like the 15% rate - or $25 x 0.15 = $3.75.
Now let's say the tyre [sic]seller has a good margin of 25% on sales or $25 on the drug dealer's tyre[sic] $400. Of this $25, only a small portion would ever possibly end up as tax revenue since the tax on the $25 profit would likely be something like the 15% rate - or $25 x 0.15 = $3.75.
Total "input" sales = $300
Total "input" tax collected = $11.25 or 3.75%
Total sales = $400
Total (gross) tax collected on gross sales = $15.00 or 3.75%
You're not even making sense, Looey.