Businesses don't really pay taxes. But don't tell Congress. They just don't understand

As the oil spill continues, Congress responds in typical knee jerk reaction. Raise taxes to pay for it. But, Senate Majority Leader Harry Reid, D-Nev. says "Taxpayers will not pick up the tab." Does anyone in Congress understand how commerce works?
Businesses do not pay taxes. Businesses are tax conduits. If it costs me one dollar to produce a widget and everyone needs widgets. I decide that I am going to make a twenty five percent profit, soI sell it for 1.25. Add on the 6.5 percent sales tax and it costs the consumer 1.33. But wait, I have to pay federal taxes and state taxes also so my twenty five percent profit isn’t twenty five percent. Taxes are a percentage of what I make for the year so let’s assume (for ease) we are going to sell 400,000 units. That means I made 100,000.00 dollars. I own the business with my wife, like most small businesses, so we pay on the married filing jointly schedule. I get to pay 9,362.50 plus 25 percent of the amount over 68,000 or an additional 8,000. Then I get to pay state taxes; another 4976.00. So of the 100000 I made, I paid 22335.50 in taxes for a total take home of 77661.5 (I am not including insurance or other costs in this to simplify the point). In essence, I made 19 percent on my product. But my goal was 25 percent so I raise my prices to get there.

Now, the government comes along and requires that my company pay higher taxes to offset the cost of half used widgets in landfills. Being the benevolent employer I am I don’t lay anyone off so I raise my price to cover the cost of the higher taxes and the consumer pays more for their widgets. I don’t care; I am passing the cost along to the consumer (tax conduit).

Does anyone believe if Congress quadruples the tax levied on oil produced in the U.S., or imported from foreign countries, to 32 cents a barrel, that it won’t raise the price of oil consumers pay? Do people think the company will pay it and not pass the cost on? And if costs for oil rise at the pump, the price to move goods and services around the country will rise and the resultant cost will be passed along. So yes Sen. Reid, the taxpayer will pick up the tab; in increased prices across the board.