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To: justshutupandtakeit
You seem to believe that a business can select any price it wants and still be successful.

No, and don't try to twist my words. The business must either be able charge a high enough price to be profitable after taxes, or fail. It cannot just "select any price it wants" unless it is an unregulated monopoly or de-facto monopoly. But neither can it fail to include all factors to net profitability, which includes costs, prices, and adjustments to gross income, such as taxes.

1,028 posted on 05/23/2005 12:03:51 PM PDT by kevkrom ("Those who stand for nothing fall for anything." -- Alexander Hamilton)
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To: kevkrom

Income taxes are not an adjustment to GROSS income but to NET income (profit) this is a point I have been fruitlessly trying to make understood. Surely you see that the decision to stay in a business is decided by its profitability which is NOT affected by income taxes. EVERY business' income is taxed the same way given its form of incorporation or non-incorporation.

Profitability is the determinant of investment and that profitability will be affected by income taxes the same way for all businesses thus it is NOT affected by IT. Your decision to get out will be because the rate of profit (before IT) is not high enough NOT because the income tax exists.


1,030 posted on 05/23/2005 12:18:48 PM PDT by justshutupandtakeit (Public Enemy #1, the RATmedia.)
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