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Old 08-31-2015, 05:35 AM  
editeur
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Join Date: Nov 2013
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The problem with sales taxes is that the state becomes interested in higher prices. The higher price, the more taxes got paid, if you lower price you reduce state revenue. With taxes on profit it works slightly different, as the profits and taxes can be increased by cost reduction through, for example, innovations.
It does not mean the govt will actively push retailers to raise the prices, but one way or anoither it will affect the policies of the state.
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