Not familiar with the US, is this actually true? In europe, as a company, you're allowed to subtract VAT on products bought from VAT owed from sales. That would contradict most of what you're saying.
I know Boeing gets an explicit sales tax exemption from Washington state on planes it sells. But things would be really weird otherwise.
For example, in the chain of iron ore -> steel -> pistons -> engine -> car: In USA, each of the middle steps get what is called a "reseller's exemption certificate" and the sales tax is only charged when you walk out of the dealer.
In EU, each of the steps get VAT taxed, but they can remit the taxes from the next step. Overall effect is the same, but USA's system is simpler and easier with less paperwork. American suppliers have to get a certificate only once and then its all set. No sales tax is collected by the buyer for established repeated relationships. One time paperwork.