Profit is a residual which may result if revenues exceed costs of production. It cannot be accurately predicted and may not exist at all depending upon market prediction accuracy. Thus, there is no way to know how much one would budget for potential income taxes.
One just hopes they will have to pay some since that means they were profitable. Business owners never know what those profits are going to be until the books are balanced at the end of the year.
We're talking about 'cost' not 'profit'. And costs are not mainly factored by profit. Costs are factored by 'gross'. 'Gross' subtracted by cost of production, wages, cost of paper work, and taxes; both currently paid taxes and those taxes paid later by saving their money and paying those taxes later, this includes income tax.
Only after all this has been taken out of the 'gross' do you get the 'profit' for a business.
One just hopes they will have to pay some since that means they were profitable. Business owners never know what those profits are going to be until the books are balanced at the end of the year.
The above statement is complete BS. Businesses can use their accounting records over one or more years to discern a pattern and present a general plan as to what the 'gross', 'profits' and how they will pay in taxes in the upcoming year.
No I don't. Not all Third Assistant Vice Presidents are accountants.
So your a corperate socialist without the intelligence to know where your paycheck really comes from.
and how they will pay in taxes in the upcoming year. = and how MUCH they will pay in taxes in the upcoming year.