Quote Originally Posted by Vladimir
I believe that "sales tax" of 20% mentioned earlier was referring to a Value Added Tax (at least in the UK). That's where something is taxed at EVERY level of development. From oil pumped out of the ground, to molded plastic, to finished item. It's not 20% sales tax, it's 20% + 20% +20%...
Errr... I worked in a bar, we could buy are beer tax free and had to pay taxes on what we sold, as a percentage of the price we sold it at. That's mostly how it works I believe, tax is only calculated on the end price of the finished product. Otherwise how could a company that buys intermediate goods compete with a company that can work from raw resources ? There would be no outsourcing then.