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 (36 reviews)

Question

Quizplus · Accepted Answer

The sales tax is collected by the government, and retailers are simply collecting it on behalf of the government from consumers. Therefore, a higher sales tax rate does not increase a retailer's profit; it may even decrease sales as consumers may be discouraged from buying.

The Higher the Sales Tax Rate the More Profit a Retailer