Quote:
Originally Posted by Raiderhader
The establishment does not eat the tax. As you say, it is built into the price, just as it is when they buy from their retailer. No one is eating the tax.
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yes, I simply mean that if the business charges $2 for a beer they pay the tax out of tat $2. In this new scenario that would still be true except that they could recoup 8.25% from the customer when doing credit cards. (since the machine can do all that automatically for them it wouldn't be a hassle)
btw here is what is REALLY happening. Texas in it's infinite wisdom has switched from the 14% flat tax on all alcoholic purchases in bar that has mixed beverages to a 6.7% tax PLUS an 8.25% "sales tax" that you can pass on to customers. That's all fine and dandy for restaurants or maybe hotel bars but not for your average bar. You don;t want to sell a $2 beer and then ask them for $2.16. SO you end up paying the tax out of the $2 which sucks because now you just got your taxes raised a point. So I was wondering "what if the bar simply added it to cc transactions?" Even if everyone switched to cash you would still be saying money because the .95% extra tax you are paying next year would be offset by the 2-3% you would save on CC transaction fees. BUT if everyone continued to use credit cards... then the taxes you pay would actually be dropping from 14% to 6.7% because the consumer would pick up the 8.25%.