what determines what part of tax is paid by consumers and what part is paid by the buyers (producers)?

Answer 1

Who actually signs the cheque is irrelevant. In a competitive market, the relative incidences of a tax depend on the relative elasticities of demand and supply. The more elastic the demand the less consumers bear, and more elastic the supply, the more producers bear. Look up 'tax incidence' in an economics textbook or the Internet for the diagrammatic explanation and mathematical formula.

Answer 2

Not only does every state have it's own rules, there are also a multitued of various types of taxes.

Ultimately, however, ALL taxes are paid by the consumer. Examples include Federal taxes on tobacco products and motor vehicle fuel. These particular commodities are heavily taxed, and these taxes are a huge portion of the final cost to you.

The question you MAY be asking is in what part of the process, from production to consumer is the tax collected.

Simple sales taxes are collected at the point of sale to the final consumer. The mechanic who buys the part to fix your car may not have to pay sales tax at that point. He buys the part at a "wholesale" price, installs the part, then charges you a "retail" price for the part plus labor. YOU pay the sales tax on the "retail" price. The mechanic pays the state that sales tax.

Some states to not charge a retail sales tax.

Some good are taxed simply because of what they are. Other goods are exempt from taxes for the same reason.

Answer 3

ALL taxes are paid by consumers.

Producers merely collect payment from a consumer and transfer part of that payment to the government. There is no other magical source of money that producers have in order to pay taxes.

Answer 4

At one level, the answer is "politics".

At another, the answer is that these taxes are ALWAYS paid by consumers. They may be LEVIED ON and COLLECTED FROM producers but producers only produce what consumers will buy at the tax-included price. Think of two oil-importing countries. One government taxes oil at the port of import. Another taxes petrol at the pump and heating oil in the shop. Both collect revenue from the consumer of oil, but the first one does so indirectly and the second directly.

Answer 5

we'd want to consistently deliver all our jobs to China the position the human beings get $2.50 an hour for demanding artwork and then we bail the organization out because some Communist develop into elected as President then and now! Obama is already accountable of 5 counts of treason and refused to handle them or the officer that further those costs. bill Clinton also dedicated treason and develop into under no circumstances charged! He gave our missile preparation platforms to China. One might want to awaken. Giving issues to the chinese authorities isn't helping the chinese human beings! the human beings recognize what it really is like and it feels like ignorant human beings will quickly discover out that exact same truth. The chinese persons at the on the spot are not the chinese authorities. the authorities there loved bill Clinton and loves Obama. the human beings there favor Obama useless!!! Earl

Answer 6

Every state has it's own rules.
Most companies pay taxes on their buildings,utilies
ect but do not pay taxes on the raw materials they use to produce their product. They also have to match your social security tax on a $1 for $1 basis.

If the company is privately owned then the owners have to pay income tax on what they take out of the company, If the company is a corportion they have to pay corporate taxs on the profits.

The end customer (me and you) pay state and city sales tax on the goods when we buy them.