They pay 100% of your fictitious “embedded rate” every time they “consume” anything - do you’re dead wrong.
The amount they pay presently in embedded taxes on purchases is dramatically less than the rate they’d pay under the FT.
That has been calculated and presented time and again on these threads in the past and it’s a relatively paltry amount - especially so if the payer is a non-citizen since it’s the full 23% marginal rate for him.