Unfortunately, the only way to correctly calculate the embedded costs in retail prices is if that cost is ZERO.
The only way to accomplish THAT is to give up the fiction that businesses can pay taxes without adding them into their prices.
The only way to accomplish THAT is to remove all taxes -- income, payroll, property, etc. -- from businesses. That would make it clear that all taxes were being paid for by individuals.
The only way to accomplish THAT is to eliminate all income and payroll taxes from individuals. Why ? Because otherwise individuals would soon shift all their income to where it was business income. Businesses would have no employees -- only sub-contractors.
So. To get prices to reflect the true, untaxed, cost of production and profit, we have to eliminate all income and payroll taxes from both business and individuals.
Can anyone say "FairTax" ?
"FairTax"!!