Sorry to belabor, elk..but here's my question:
Say you make a widget. Do you pass on the cost of the cigarette in that widget price? I can see that with gasoline (to transport the widget)...but I'm not quite getting the cig analogy.
If I choose not to buy caviar...I am not spending my discretionary dollars on caviar...and I am not paying the caviar tax.
If I buy bread...that is more essential...so I AM paying for the gas tax, etc., that is incurred in getting it to me.
Sorry if I am pushing this out...but I do want to understand.
Taxes are a cost of doing business (unfortunately).
Businesses do not pay taxes, they pass them on to their customers to pay.
Labor is also a cost of doing business, that is also passed on.
The cost of labor seeks its own ground. If the labor force is not satisfied with its compensation, it moves on.
People doing the labor factor all the things they want or need into their compensation demands.
If the price of something they want or need goes up, they demand more compensation.
25% of the labor force uses tobacco products.
Taxes on that is figured into their wage demand, and is passed on to the consumer (you).