But the issue with sales taxes is that it is applied on the final sale, which generate distortions when the products are being imported, or have a long supply chain spread across a country, as it is a tax on the consumer, the value is only capture at the consumer location, not along the supply chain (that's what I meant as a terrible idea).
https://tax.thomsonreuters.com/blog/onesource/sales-and-use-...
But between VAT and sales tax, I strongly oppose a pure sales tax, although I would be ok with VAT charging a final tax which is allocated to the consumer location (vs. the location of the business).
Pure VAT: taxed where value is generated.
Pure Sales: taxed where the consumer is based.
Mixed VAT-Sales: mostly taxed where the value is generated, plus where the consumer is based.
The mixed VAT-Sales model would generate a better allocation of tax funds across the entire supply chain, all the way to the consumer.
I think it's only when you have non perfect market condition (like monopoly, monopsony, captive company) that the real added value is not visible and where your idea of mixed taxes is needed. Do you think it make sense or do you something other in your mind?
you are correct that sales tax is almost always regressive, but please be careful making this kind of "just so" argument regarding taxes. the place in the production pipeline where taxes are collected has almost nothing to do with who ultimately bears the burden of the tax. see https://en.wikipedia.org/wiki/Tax_incidence if you're interested in learning more.