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To: Hostage
Corporations cannot embed their ***income*** taxes into their pricing...

Baloney! In fact, they MUST do so or go broke as they have only ONE source from which they must pay everything from the electric bill to their income taxes and that is their SALE RECIEPTS. They spend loads of money making accurate assessments of what their tax liabilities will be for EXACTLY this purpose.

Corporations will charge what their markets will bear.

That is true and the problem is that with current U.S. tax law (the corporate income tax in particular) in place OUR producers are not able to compete effectively in many markets because we cannot border adjust our prices while others can and do.

40 posted on 12/13/2006 7:58:39 AM PST by Bigun (IRS sucks @getridof it.com)
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To: Bigun

It said ***income*** taxes with the emphasis added. You are probably confusing such taxes with sales taxes.

Ask any accountant. There is no ***expense*** line item for corporate ***income*** taxes before profits. There are reserves for such taxes but no ***expense*** items for such taxes. If a corporation did otherwise they would be guilty of income tax evasion.

Look up EBITDA.

Better yet you show the link to GAAP procedures that clearly describe how corporations embed their income taxes on profits into their pricing before they write the check to the government. You can't because such a procedure doesn't exist.

When a corporation makes a profit they must pay tax on that profit period. Those taxes are the corporate income taxes.


41 posted on 12/13/2006 8:34:07 AM PST by Hostage
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