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Who actually pays the tax depends on the Elasticity of the consumer and the business. Who the law says it should be collected from, is really irrelevant.
by 1718627440 1y ago
Who actually pays the tax depends on the Elasticity of the consumer and the business. Who the law says it should be collected from, is really irrelevant.
- cestith 1y agoGo run a local retail business in conflict with state law and regulations. Then tell me how irrelevant those laws are.
- 1718627440 1y agoThe law only says by whom and how the tax is collect, it doesn't specify the tax burden, because it can't, that's only observable and happens due to supply and demand.
- cestith 1y agoThe guidance published by the state says explicitly that a business collects the tax from the consumer as an agent of the state, and that the taxes collected belong to the state rather than to the business. If it was a tax on the business, then it could be paid later out of the business’s general funds. Whether you believe the above or not - and I’m not going to discuss that part further, because this is all easy to find online - the fact remains that most sales taxes must be charged separately from the product price at checkout. There are, as I said, exceptions for bulk goods.
- 1718627440 1y agoSo what? You can collect taxes how you like, the tax burden still depends on the Elasticity.