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Comment Doesn't matter who pays the tax (Score 1) 553

Plenty of people are saying, "the consumer always ends up paying the tax." This isn't quite true. The economics says that it doesn't matter who is responsible for paying the tax: The outcome will be the same either way. The consumer and the producer will end up splitting the cost of the tax. Who pays more depends on the scenario. If the computer market were a perfectly competitive market and everyone charged the same price for a computer, then the consumer would be paying the whole tax. But that clearly isn't the case. Different companies charge different amounts for identical hardware. Therefore it is safe to assume that the tax burden will be shared by the manufacturer and the consumer (even if the tax is charged to the consumer). Bottom line: Let them charge whoever they want. It doesn't matter who pays the tax.

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