General Discussion
In reply to the discussion: Graphic: Who Pays Taxes [View all]former9thward
(32,005 posts)Who has no experience in the real world. Because most of it is false.
Taxes are on profits, and profits are calculated at the end of a tax year by adding up all the revenue and subtracting all the costs. When a product or service is sold the company doesn't really know yet how much profit, if any, it will have at the end of the year, so it doesn't know what the tax will be, so how can it adjust prices?
Companies do not wait until the end of the year to figure profits. They do it on a daily basis and make price adjustments on a daily and occasionally an hourly basis. They don't go through the year, blind-folded, wondering what will happen at the end of the year. They know their daily revenue, their costs -- including profits, and make adjustments. Companies pass along all anticipated costs to customers. If the market does not allow them to do it, they go out of business and pay no taxes.