7 ms·

Sales tax is essentially a tax on corporate revenue.

• Thev00d00 6y ago
  It does not capture any B2B revenue?
  • makomk 6y ago
    Intentionally so, because taxing B2B revenue is effectively a financial penalty for not being a huge vertically-integrated megacorp. It means that any goods which have more than one company involved in their production are taxed at a higher rate than ones where every step is done in-house. This is not generally a desirable tax incentive.
• kelnos 6y ago
  Is it? In the US, at least, sales tax is taken on top of listed prices (it's uncommon for an establishment to list "tax included" prices), so essentially a customer is paying for the product and then paying the government on top of it. Unless your thought is that businesses would charge more if there was no sales tax. I don't really buy that, though; businesses list pre-tax prices specifically to avoid sticker shock.