> The problem with "sales tax", or "value-added tax" in Europe, is that it applies only to consumers.
That's not quite correct. At each transaction you pay VAT on the margin, that's why it's called Value Added Tax. So if company B buys from company A and sells to company C then company B pays VAT on the difference between what it charges company C and what it paid company A.
That's not quite correct. At each transaction you pay VAT on the margin, that's why it's called Value Added Tax. So if company B buys from company A and sells to company C then company B pays VAT on the difference between what it charges company C and what it paid company A.