(If you look at the HTML code, there's more code than there is sentence on that one.)
This is a point that I can't stress often enough whenever we discuss any "tax on businesses." Because the business does not pay that tax. They take the tax, classify it as an expense, along with whatever costs are involved in complying with the tax, and they add it into the price of the item.
So when you buy something, not only do you pay the costs to produce the product (fixed, materials, labor) plus the profit margin, but you also pay for every tax that the business has added to the cost and every cost incurred in complying with those taxes (including the 3 payroll taxes).
This is what I refer to when I talk about embedded taxes. I challenge anyone to calculate how much embedded taxes is in any one item, and produce that math in a comment. I know it won't happen because that requires the work of a full time analyst. The best number I've found (and I tried searching but I haven't found the math myself) is approximately 22%. And remember, this is IN ADDITION to the taxes you can look and see on your paycheck and the various other behavior taxes (like on gasoline, cigarettes, and beer) that you know exist. And I haven't even dealt with state and local taxes yet.
This is one of the reasons that radical tax reform (links are coming), including eliminating the concept of "taxing business" is about the only way to make the government accountable for the amount of tax pain they bring.
And before I go, here's the requisite FairTax link (as though I could do a tax post without one), the Wikipedia entry for the FairTax (for those of you who want to argue with the objectivity of first link), and the Online Tax Revolt link (and a reminder to sign up or DIE!!! (and be taxed for it)).