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To: Conservative Goddess; Your Nightmare
If company "A" manufactures a component of a larger assembly, and sells the component to company "B" for inclusion in the final product....there is tax cost associated with the sale of the component and the sale of the final assembly.
So the income tax is really a sales tax.

What's the tax cost of a sale when the company makes no money on the sale? It is possible, especially for startup businesses.

158 posted on 06/08/2006 3:36:58 PM PDT by lewislynn (Fairtax = lies, hope, wishful thinking, conjecture and lack of logic)
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To: lewislynn
What's the tax cost of a sale when the company makes no money on the sale?

Depends on his ER payroll taxes, his compliances costs AND the ER payroll taxes, compliance costs and any income taxes of ANY AND ALL of his suppliers.

159 posted on 06/08/2006 3:43:53 PM PDT by Principled
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To: lewislynn

Someone please find the crayons for this poster to amuse himself with.


162 posted on 06/08/2006 4:13:36 PM PDT by pigdog
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