“I learned in a high school class that companies just pass their expenses to their customers.”
Businesses do pass taxes, and other costs, along to customers as soon as they can, if they can.
And if an industry can’t pass along higher and higher and higher taxes and other costs then the weakest competitor goes out of business; then the second weakest competitor goes out of business; and so forth and so on.
“”””””””””And if an industry can’t pass along higher and higher and higher taxes and other costs then the weakest competitor goes out of business; then the second weakest competitor goes out of business; and so forth and so on.”””””””
Sort of. If you somehow don’t have competition from other countries where the tax is much lower. High taxes are good if you want everything to come from China. Not so good if you are an American business. The market will tolerate only so much.