"Ridiculous. Even if you don't explicitly factor those taxes in, you have to charge enough so that your after-tax profits are enough to justify the investment of time and money into your business. Just because you're not doing it consciously doesn't mean you're not doing it."
Thank you, KK, for that lucid comment. It bears repeating. I wonder how many of thes economic geniuses who say that income taxes are not a cost have ever tried to raise capital for a business. They should try to convince a prospective investor that it is only pre-tax income that determines their ROA and that income taxes do not count.
Investors who lend you money are not concerned about income taxes since they are paid interest which is a tax deductible COST. They only want to be sure that you make a profit so that you CAN pay income taxes and that there is enough revenue to pay the interest and principle.
Investors who buy stock are generally investing for the Capital Gain in the Stock and again are not concerned about income taxes since often the CGs come before any profits are made. Generally the stocks having the largest capital gains do not pay dividends either.
Once more your cluelessness is apparent since the potential investor has to face the same income tax for ANY investment thus it cannot be a factor in his decision. ONLY potential profitability is. This is beginner stuff and you snidely call us "geniuses".