It literally doesn’t. The price is the same either way. Reduced demand from the higher tax makes it so producers will lower prices. This is really basic microeconomics.
From Wikipedia: “tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply”
Reduced demand from the higher tax makes it so producers will lower prices.
I have never once seen this happen… i just see prices rise
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