Corporations do not pay taxes

[red-beard]

They only collect taxes by increasing the price of the products and services, when they are taxed.

Example from today:

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LEGAL NOTICES
Texas Recovery Fee
FlexPay Paper Payment Reminders
Returned Payment Fee Increase

Texas Recovery Fee

Starting in February 2011, Texas customers will see a new fee on their bill. Texas law imposes a franchise tax on each company conducting business in Texas, including T-Mobile. We will add a monthly charge labeled "TX Recovery Fee" on your bill to recover the cost of complying with this tax on T-Mobile. This fee is not a government mandated charge. If you have questions, call 1-800-937-8997.

Texas Recovery Fee FAQs

What is the fee for?

The fee is being introduced to all subscribers with a Texas Billing or PPU address for the recovery of costs associated with complying with the Texas Margin Tax.

How is the fee applied to my bill?

The fee is a percentage of all charges related to telecommunications services on your monthly bill. The rate is subject to change. Examples of these services include your monthly recurring charges for your rate plan and features and any voice, messaging or data usage.

Do other wireless providers charge this fee?

Yes, other wireless providers charge the equivalent of a TX Recovery Fee, although they may label it as Texas Franchise Surcharge, Texas Franchise Tax Recovery, State-Cost Recovery Fee or similar terms.

[sammyg2]

That is not true in all cases. Many companies do not directly control the price of their finished products, they are constantly adjusted by supply and demand. The market sets the price.

Take produce growers for example. they take it to market and compete with other growers and accept the highest bidder for their products. They can't just say "hey you need to pay me more now cause my taxes went up". They also can't hold out for very long or their product goes bad.
That's assuming the stoopid gubmint hasn't already stepped in and meddled with the market to create artificial prices.
So they pay taxes and they come directly out of the bottom line.