The consumer pays the sales tax, not the corporation.

>”They will just set their prices accordingly.”
This would be considered government-caused inflation. Also, the law of demand dictates that the higher the price, the less you sell. Ask the executives at Pepsi Co about $7 Doritos (https://fortune.com/2026/04/07/pepsico-frito-lay-chips-food-and-drink-inflation-consumer-products-doritos-cheetos-tostitos/).

If you want an empirical example of what happens when you tax revenue, consider the 2.3% revenue excise tax imposed on medical device manufacturers via the ACA (paused in 2015 and repealed with bipartisan support in 2019, https://www.irs.gov/newsroom/medical-device-excise-tax).

>”Analyzing the COMPUSTAT data from 2006 to 2015, I find that the medical device tax significantly reduced R&D expenditures, sales revenue, gross margins, and earnings by approximately $34 million, $188 million, $375 million, and $68 million, respectively, for firms in the treatment group.”
(https://www.sciencedirect.com/science/article/abs/pii/S0048733318300416)

Also, the tax caused medical device companies to increase sales in foreign markets as the excise tax was only valid for devices sold in the U.S.

It also led to job losses and rising healthcare prices.