The table below describes the value added at each stage of production distribution of a line of sweaters. Calculate the effective tax rate for a 1% value added tax and compare this ETR to the stated tax rate Production Distribution of Sweaters Cost of Value Business Added Inputs Sales Price to Next Firm in Production Process Value VAT Added Remitted to Tax Government (1%) VAT Retained and Reimbursed to Firm 0 Wool production Textile spinning Sweater manufacturer Retail sales TOTAL 50,000 75,000 125,000 200,000 450,000