Because they’re applied at each level where a different company reports income. Most other costs aren’t. If they did, then no value would be added to the product. The refinery doesn’t have to redrill oil. The gas station doesn’t have to re-refine it. They’re all taxed on each individual company’s profits, however.
They’re all taxed on each individual company’s profits,So how does that equate to cascading?
Whatever one company passes to the next company, taxes, labor, etc. is deducted from the gross income to determine the taxable income...Where's the cascading/compounding?
There's no logic in your thinking.