SD, C - corporations are legal entities, but they are owned by shareholders.  The sales tax, in my opinion will mostly be passed through to consumers.  The portion not passed through will be paid by the shareholders through reduced dividends or through reduced growth of the company.  No free lunch.  Shareholders are people, think 401K participants - not rich just citizens.  C - corporations do not accumulate wealth for pleasure.  The corporation itself does not enjoy nice cars or homes.  All of the tax comes out of people whether consumers or shareholders.  So it is total fraud to say that abstract companies will pay as if they had independent existence.  C-corporations especially typically have a wide range of shareholders, ordinary people.  Note the LLC's, S corps, and sole proprietorship which mix personal and company profit and may be held by rich individuals are not taxed under measure 97.  No 97 is aimed squarely at the little guy.