[totalrobe]

It's more complex than that - it almost seems more like the US is made of 50 countries with open borders. I've lived in 3 different states and each is different in terms of tax.

The US Federal Gov primary source of revenue is the federal income tax, while State Gov budgets are based on income taxes, property taxes, and sales(VAT) taxes. Some states have no income tax and some have no sales taxes, some have very high/low property taxes.

Additionally, some counties (several cities) and even cities have income taxes or additional sales/property taxes. It's very difficult to calculate what you effectively pay in taxes and where those taxes go.

[violinist]

State sales taxes can't really be compared to a VAT. A VAT gets collected at each step along the way from raw materials to final product; sales tax is only collected at final sale.

[njarboe]

Collecting a VAT is probably more expensive to society than collecting a sales tax, as every business has to keep track of it instead of just the ones that do the final sale. The reason you need VAT is in practice, if sales taxes are higher than around 10%, the number of businesses/people who start to find ways to not pay it starts getting significant. With a VAT each business in effect enforces the tax on the business it buys from or has to pay the tax themselves. Raising a sales tax higher than 10% can net you less tax revenue(highest sales tax in the US is 10.25%, highest VAT 50% (Bhutan) with 25% common in Europe).

I imagine this effect is getting less pronounced as cash is used less and less in transactions.

[totalrobe]

Conceptually, yes. Most mid and large manufacturers are using gov-sponsored programs that allow deferral of duties and VAT/other taxes until final sale. Source; I work in global trade.