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To: Your Nightmare
Where oh where do gross profits come from?

(Hint) Look under sales reciepts as there is NOWHERE else for them to come from!

620 posted on 05/19/2005 7:14:50 AM PDT by Bigun (IRS sucks @getridof it.com)
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To: Bigun
Where oh where do gross profits come from?
From whatever mechanism the business uses to generate profits. If the business sells widgets, they get their profits by selling widgets for more than it cost to make them. If they can't sell them for more than it cost to make them, they loose money and don't pay income tax.


Look under sales reciepts as there is NOWHERE else for them to come from!
Technically, that's not correct. Plenty of companies have investment income of their own. But if you are trying to say a business embedded their income tax in the price of their products, that's just pure bunk. A business sells a product at the market equilibrium price whether they have to pay an income tax or not. They get what they can for it, not what they want (or even need).
622 posted on 05/19/2005 7:24:55 AM PDT by Your Nightmare
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