The higher the sales tax rate, the more profit a retailer can earn.

Name: The higher the sales tax rate, the more profit a retailer can earn.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

The sales tax rate is a government-imposed tax on goods and services and is not profit for the retailer. The retailer only collects the tax from the customer and must remit it to the government. The higher the sales tax rate, the more expensive the item becomes for the customer, which may discourage purchases and actually decrease the retailer's profit.

The Higher the Sales Tax Rate, the More Profit a Retailer