If prices were taxed progressively (which AIUI they are in some cases, e.g. expensive imported cars), you might see large items split into many small parts sold separately, with an on-site assembly service that costs less than the saved taxes.
Then you simply tax the service. But on the other hand, higher taxes don't always result in higher revenues.
In fact, you might see an uptick in revenues. If people see they might save money with that method then more people might be likely to buy the item they, otherwise, may not have.
It all depends on how the taxes are structured.
Of course, we then slide into complicated tax code like we have now.
