[Conservative Goddess]

Your end of the day profit, net profit after taxes, most certainly is dependent on the tax burden.....and it's a cost, that full absorption cost systems try to allocate throughout the year......

[justshutupandtakeit]

I am speaking of income taxes not all other taxes. Estimations must be paid but they are not definitive. Sometimes they are not final for years.

[Your Nightmare]

Your end of the day profit, net profit after taxes, most certainly is dependent on the tax burden.....and it's a cost, that full absorption cost systems try to allocate throughout the year......

We were talking about how businesses might adjust their prices to account for income taxes they might owe at the end of the year. Are you suggesting that a business might raise their prices to offset their income taxes? If so, why don't they raise their prices a little more to get a higher net profit? And maybe just a little more...

All this talk about corporate income taxes being in prices seems to be very ignorant of how prices are set and the market economy. If a business could raise their prices and generate more gross profits, they would, whether they had to pay income taxes or not. Businesses will attempt to maximize their profits regardless of the income tax they might owe, and if they are successful, at the end of the year, the income tax is a liability they must pay.

BTW, in doing a little quick research, I was looking through GM's 2004 annual report. In 2004 they were estimated to have a $282 million US federal income tax credit.