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View Diary: Bernie Sanders: "Guess Which 10 Companies Aren't Paying Their Share" (147 comments)

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  •  Because corporations regularly pass on (5+ / 0-)

    taxes to their customers - for example, look at your long distance bill or phone bill. The price of gas at the pump includes tax amounts. They just don't usually break them out - although occasionally a pump will have a sticker that tells you what amount of the price is taxes. Companies collect sales taxes from customers. Look at a closing statement for a real estate deal or a sales contract for a car - the customer pays most of the taxes.

    The poor, or most of us, on the other hand, don't get to total up all the taxes they pay every week and have their employer add that amount to their paycheck, which is what you're suggesting happens.

    If my thought-dreams could be seen, they'd probably put my head in a guillotine

    by badger on Mon Aug 22, 2011 at 11:30:20 AM PDT

    [ Parent ]

    •  "pass on" isn't the best term for these taxes. (0+ / 0-)

      A minor nit, but I think most people use the term "pass on" a bit differently than you're using it. Your point that since these taxes are usually itemized on a bunch of different receipts it's cumbersome for a consumer to compute how much of these taxes they pay remains valid.

      The taxes you cite are effectively collected from the consumer by the billing/POS system run by the service provider/retailer. These taxes are, by law, collected regardless of how much money anyone in the supply chain is making or losing.

      That's quite a bit different than a tax higher in the chain that may, or may not, trickle down (i.e., be "passed on") to the consumer and which are completely hidden from the consumer. For example, your local farmer is required to pay their share of payroll tax on their employees' salaries. Eventually, to some extent, this results in higher produce prices at the farmers' market. However, no law requires the farmer to pass these taxes on and, if the competitive pricing landscape prevented them from doing so, they may be unable to raise their prices just because payroll taxes went up (for example, they may instead accept lower profits, go out of business, cut employee hours, or reduce wages).

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