So I am coming to the conclusion that the only effect would be the removal of corporate income taxes which is currently 35% of the net profit of profitable corporations. Is this the only benefit we can assume from the FT upon price levels?
No, because there is more in the mix that the corporate income tax per-se. The overhead costs associated with the tax system remain whether or not a particular business pays one penny of corporate income tax, as well the employer's SS/Medicare excise taxes on payrolls paid are repealed releasing those taxes and costs associated with them. Along with the removal of those costs are the economic effects impeding business sales(reduced demand) as a consequence of having to cover tax related costs in product pricing.
All taken together accounts for a substantial differential in producer pricing of goods and services when income and payroll taxes are repealed.
Agreed. And compliance costs would diminish greatly. But if a company makes say a 15% rate of return (net) and is taxed at 35% on that return the effect of eliminating income taxes is 5.25% of that corporation's income statement. Add another, what is it, 7% of its payroll which is say 50% of its expenses and you get another 3.5% in savings. That's just 8.75%. Add another 1% in compliance cost and we're up to 9.75% of savings, which is significant but how does that translate into lowering prices by 23%? I know there are companies that are well over and under these numbers. I'm just using hypo's.