[kevkrom]

The inverse of this is competition would have precluded businesses from putting the tax in prices to begin with, they would have taken less profits instead

Hogwash. The inverse says that profit margins can only be cut so far before there are diminishing returns on cutting it further. Taxes are part of the cost of doing businesses, and your competitors suffer the same costs, so no one gains an advantage by cutting profit margins beyond the point where extra market share makes it worth while.

[Your Nightmare]

Taxes are part of the cost of doing businesses, and your competitors suffer the same costs, so no one gains an advantage by cutting profit margins beyond the point where extra market share makes it worth while.

No they don't. There are foreign companies and the are plenty of domestic companies that don't pay taxes. They could also pay their labor less instead of putting taxes in prices.

Look up "incidence of corporate taxes" on Google. It's not hogwash.