Income taxes simply are NOT included in product prices. Federal corporate income tax collections are a tiny portion of total taxes and many of our largest companies rarely pay them.
Your are neglecting the costs incurred in minimzing that income tax a cost that hits companies whether the pay one penny in income tax or not.
The second area of taxes you miss are the payroll excises paid by employers that are paid regardless of whether or not one dollar of profit exists anywhere in the business, and not to mention the overhead that goes with remitting those taxes as well as handling withholding accounts on behalf of one's employees.
Under the Fair Tax Act (HR25) federal income and payroll taxes are repealed, not tax is collected on business purchases and the business tax related overhead costs fall by more than 90% of what they are today.
Under the NRST only puchase of new goods and services for non-business, and non-investment uses are taxed, collected by the business and remitted to state tax agencies in parallel with state and local sales taxes. Thus all the businesses that feed into retail level consumption are no longer burdened with any costs of the tax system, and retail businesses receive compensation acting as agent in collecting the NRST for government.
As a consequence the potential for shelf price of consumption products to be reduced is much greater than just the taxes received by government from business.
I spoke ONLY of income taxes so that objection is moot.
Of course, having the Sales tax affect only new production will mean a collapse in industries and retail sales since people will strive to find comparable used stuff. This is one of the least well conceived components of this whole scheme. A disaster waiting to happen.
Any price reduction will be because the economy collapses.