On my short-post-blog today I posted a link to this CNN article about the increase in taxes tobacco companies are paying to the feds and how that has raised prices for consumers. The price increase reflects not only the increase in taxes, but also accounts for the expected loss of sales for both the manufacturers and retailers. In short, a $0.62 tax increase can result in a price increase to the consumer of ~$0.90.
So, for all of those who are in favor of “punishing” evil corporations like oil companies who make a profit by raising their taxes, do you get it now? Do you finally understand that it isn’t really the company who pays the tax, it’s the end user? Do you now see how increasing their cost is actually a tax increase on regular people?
It doesn’t really matter if you get it or not–the people doing the taxing do. These are the same people who do you the “favor” of automatically withholding your income tax from every paycheck so you don’t realize how much you are actually paying.