"Rates of return on investment are calculated prior to any taxation of business income. They are affected by expenses but not by income taxes. ROI are the means of determining whether to make a certain investment rather than another. They are devices to allocate resources and are not affected by income taxes which tax profits at the same rate."
That is totally incorrect, but why am I not surprised. You have obviously never been involved with venture capital decisions.
Profits are taxed at the same rate only if they are at the same level and in the same tax jurisdiction. That is because we have a graduated tax system and because different countries have different tax systems.
Are you aware that Ireland went from having one of the slowest economies in Europe to one of the fastest? Any idea why that happened?
In fact, I worked with an inventor who wanted to build his manufacturing plant in the USVI because they had a development zone down there and, even though it is a US territory, you could apply for a special program in which you got a substantial credit against US income taxes. As I recall, it was substantial enough that you probably would not have had to pay any income taxes your first few profitable years. Why would the USVI have such a program if all entrepreneurs and venture capitalists cared about were pre-tax profits?
You have put out an amazing amount of misinformation on this single thread. Is there some kind of award on FR for putting out the most BS?
Are you telling me that business income in the US is not taxed at 38%?
Or that it is strange that companies want to keep as much of their profit as possible? Or will take advantage of schemes to lower their taxes? Gee what a shock.