I live in New Mexico where we have "gross receipts tax", and there's a notion that this tax is "charged to the customer". For instance, when I see a TV that is on sale for $100, I'll really end up paying $107 because I'll be charged an extra $7 at the purchase counter for "gross receipts tax".
My question is simple. Why do we bother charging gross receipts tax fees at the sales counter instead of adjusting our prices?
As I understand it, gross receipts tax is imposed on your gross revenue. As the seller of the TV in the example above, I have made $107 total. The state will tax me $7.49 (7% of $107). So, in spite of the extra $7 the customer payed "for tax", I'm short 49 cents to the state. It is therefore impossible for the customer to pay gross receipts, so why do we pretend they do?
There are other taxes that companies pay as well, such as income tax, but don't charge to the customer as a fee. So, why are gross receipts taxes charged to the customer?