Generally a tax would be applied to net income...ie sales price - cost...this way it is added to the price...it has nothing to do with the business other than adding it to the bill when the widget is sent to the retailer.
You complain about the waste and fraud in the tax system (which allwos business to get out of paying taxes) Well THIS obsolves them of having to pay any taxes at all!!
I am all for lower taxes for everyone, but this throws the total tax burden on the consumer. This does not come out of a business’s profits...it is not even figured into cost...