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At least in US Amazon already adds tax in purchase price. Similarly when you buy copy of software, tax is already added. For ad bills to publishers, I would thi
by sytelus 8y ago
At least in US Amazon already adds tax in purchase price. Similarly when you buy copy of software, tax is already added. For ad bills to publishers, I would think it’s the same. So what does this “digital tax” is about?
The big issue here is that eventually all taxes will be transferred to end customers. The profits for businesses don’t get lowered because of more taxes (unless demand drops). So people in every country should be worried when government eyes for more taxes.
- throwaway2048 8y agoTo portray taxes as only being paid by the end customers is a massive oversimplification, if businesses could charge the amount extra the tax supposedly increased prices by and retain optimal profitability, they already would. Taxes hit profit margins first, possibly pushing companies into non viability (unlikely to be much of a concern in this arena). Remember that businesses don't just operate based on the cost of their inputs, they operate based on the price customers are willing to pay for their outputs aswell, which is often divorced entirely from the cost of inputs, especially in markets dominated by a few companies.