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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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To: Popman

You’re nuts. That is not the way it works. Taxes is money. Real money that goes to the government.

If the INCOME tax rate is zero the expenses goes up or the NI goes up. When ever the government lowers corporate tax rates cap equipment has gone up.

You are a nut job,


56 posted on 05/02/2008 6:41:32 PM 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: Popman

You are so stupid I can’t believe it. Under you logic if the corp income taxes went to infinity the companies would be able to receive infinite Gross Sales. The problem with your stupid logic is that prices are not determined by companies. They are not they are determined by markets. The price demand curve is a curve it is not a line. Plus there is a giant supply chain suppling all those costs of goods - paying taxes on profits. You are really one of the classic Freepers with NO economic training. I would suggest before embarrass yourself any further you read Thomas Sowell.

Bottomline is that corporate income taxes takes money out of the market economy.


57 posted on 05/02/2008 6:52:03 PM PDT by Sunnyflorida (Drill in the Gulf of Mexico/Anwar & we can join OPEC!!! || Write in Thomas Sowell for President.)
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