Cave dwellers used animal skins. The Ancient Greeks used matted animal hair. Today’s socks are made from more sensible materials like cotton, wool, and nylon. Most states exempt manufacturers from paying sales tax on raw materials and packaging materials. Taxed in three states and the District of Columbia Partially taxed or taxed at a reduced rate in five states Exempt in 37 states. 

HAWAII IS NO PARADISE FOR MANUFACTURERS 

Hawaii’s general excise tax (its version of sales tax) ranks #1 for broad application — covering virtually all products and services, including manufacturing equipment and raw materials. Materials purchased by manufacturers for use in sellable products are taxed at the wholesale rate of 0.5%.