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You disagree with the concept? Walmart has 1.8% of sales embedded as taxes. Suppose Walmart's suppliers have another 1.8% of their sales (measured as a percentage of retail value, just for convenience so it's fair to add the percentages together) embedded as taxes.

That wouldn't be cascading taxes, that would be accumulating taxes. Cascading happens when you tax a tax on multiple levels. That isn't happening here.

What's happening in pigdog's first example is that profits are accumulating at an execrated rate in nominal terms because he is using a set profit margin for every level. If you look at final price of $66.44, $65.44 is the sum of all the profits throughout the chain!! There is only $1.00 of value added costs in the whole damned chain.

It's not surprising that $22.51 of the $66.44 product price is taxes when profits are $65.44 of it!

What's happening in pigdog's first example is that profits are accumulating at an execrated rate in nominal terms because he is using a set profit margin for every level.

I don't understand your point. A wholesale company's tax costs are reflected in the price of that company's products at wholesale. The retailer buys, incurrs it's own tax costs, and passes all of it on to the consumer. The final retail price includes corporate taxation at every level in the supply chain.

I see that Nightie is illustrating his lack of understanding of what the cascading example shows. that's pretty typical.

I also wonder if he really knows what "execrated" means ... he's such an onager!!