First, I have ran my own business, so I know what I am talking about.
Second, because the market is set by the common denominator of public will! That means businesses set their prices as high as the public is willing to pay for their services.
Third, and last, see when the cost of business goes up for the cost of gas, then EVERY gas station raises their prices and yet the public continues to purchase gas. Another example is airline bag fees. The government put extra security fees and costs onto the airlines industry. So, the airlines industry created bag fees to offset their losses and yet, the American public continues to fly!
A more simple explanation would be that many businesses set an expected profit level and then work their business plan around that expected profit level even though MORE profit could be made. Then, when other companies realize that they can make thhat higher profit, they crush the smaller businesses and then set the market prices for the entire region (see WalMart business strategy as this example).
So, your premise that ALL BUSINESSES are and should be greedy for every public dollar is the MYTH, not my statement that businesses don’t pay taxes!
...every time my business taxes are raised, my product costs go up to ensure I continue to make that $1000 profit - PERIOD!
You contradicted yourself and went a long way to do it.
If you raise your price to offset your income tax (income tax is the subject of the thread) you will increase your profit and hence you increase your tax. Your taxes ARE NOT A DEUCTIBLE cost of doing business and businesses pay tax on profits and gains.
Everything else being equal, raise your price, increase your profit, pay more tax...Then what? Raise your price higher?