Reply to post: @a_yank_lurker - who pays corporate tax

Google UK coughs up £130m back taxes. Is it enough?

DougS Silver badge

@a_yank_lurker - who pays corporate tax

one the consumer/final purchaser ultimately pays all the taxes levied on the manufacturer, distributor, retailer, etc.

Sorry, but that's absolutely 100% wrong. There is no simple answer, which is why this is not a simple topic. Not everyone has the ability to raise their prices to cover an increase their taxes - not if your product is something that's essentially identical to everyone else's (like gasoline/petrol) You can't simply charge more to make up for an increase in taxes, because that may be counterproductive if a lot of your customers go to the station down the street. Gas is gas, there's no reason to pay a pound more to fill your tank just because the station's owner got a big tax bill.

In some cases the consumer pays the taxes because the price is able to be raised when taxes are raised. In some cases the owner/shareholder pays the taxes because the price is not able to be raised when taxes are raised and therefore the owner must accept less profit. In some cases the employees pay the taxes because the price is not able to be raised when taxes are raised and instead of forgoing profit the owner doesn't give his employees a raise or fires one of them and makes the others work harder.

It is probably very rarely 100% of one and 0% of the rest, but more likely some combination of the above. Which gets hit the hardest depends on the demand curve for that product, the ability of consumers to go elsewhere for the same or similar product, and the ability of employees to find a better job.

It is nowhere near as simple as seem to think it is.

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