Carriage Returns in Post not adding Break or Paragraph?

Does anybody know why when I post in wordpress it doesnt automatically recognize a carriage return and put a break or paragraph tag in the html editor? I read countless posts about it being linked to margins in the CSS, but I overrode them in my blog file with .post p {margin-top: 25px;} and nothing is still working… please help. The client wants to put text in the wordpress visual editor and have it look exactly like that after it is posted.

Here is a link to my live example of posts so you can inspect the CSS sheets if you need to. Thanks!