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To: Popman

“Corporations do pay taxes on their profits.”

And when they pay taxes they have less money to invest in new projects, new equipment and JOBs.


47 posted on 05/02/2008 7:24:54 AM PDT by Sunnyflorida (Drill in the Gulf of Mexico/Anwar & we can join OPEC!!! || Write in Thomas Sowell for President.)
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To: Sunnyflorida
And when they pay taxes they have less money to invest in new projects, new equipment and JOBs.

Sorry, that's not the way it works.

Taxes are already figured into the cost of doing business

Example A: Corp pay no taxes (example does not exist in real life unless Congress gives them a tax break)
Gross Sales: $1.00
Cost of Goods:$.60
Gross profit:$.40
Operating Expenses: $.30
Income Before Interest Expenses (EBIT):$.10
Income tax expense: $.00
Net Income$.10

Example B: Corp pays taxes (Reality)
Gross Sales: $1.10 (higher prices)
Cost of Goods:$.60
Gross profit:$.50
Operating Expenses: $.30
Income Before Interest Expenses (EBIT):$.20
Income tax expense: $.10
Net Income$.10

The cost of paying taxes are paid by the consumer. Companies make the same income

54 posted on 05/02/2008 2:49:54 PM PDT by Popman (Typical bitter white male clinging to my religion and guns......................)
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