[VRWC_minion]

Your analogy fails. As a consumer, I buy the book I pay tax on it. Tax #1. I go see the movie. Tax #2. I rent the DVD. Tax #3. I buy the DVD. Tax #4. All the same creation and I pay four separate taxes.

[kevkrom]

Your analogy fails. As a consumer, I buy the book I pay tax on it. Tax #1. I go see the movie. Tax #2. I rent the DVD. Tax #3. I buy the DVD. Tax #4. All the same creation and I pay four separate taxes.

You're missing the point. If you make four separte purchases, you're paying the tax on four different items. If, for example, you only buy the DVD, you are completely unaffected by any taxes from the book/ticket sales and DVD rentals. Because the taxes do not affect each other at all, it not any of the upstream componetns of the final product (many of which are shared, including the work of your authorship) that are taxed, but only the final products sold.