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I still don't understand why sales tax is so popular instead of taxing on cooperate profits. Sales taxes create all the problems, the tax is passed directly onto customers, and the administrative costs are higher.


Because it's easy to collect, whereas corporate profit taxes have lots of room for creativity.


It is definitely easier to audit profit taxes that has to follow a standard protocol than checking every transaction. Do we expect the auditor to call random customers whether they purchased bread on November 17 last year?


What exactly is easier about auditing profits, when they are the difference between a claimed number (income) and another claimed number (expenses), whereas sales tax is literally printed on receipts?

Thats why you hear about megacorps paying $0 in (profit) tax, but you never hear about anyone "dodging" sales tax.




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