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Comical, isn't it.

I've asked them how the light bill, the copier payments, and supplies are paid for. They haven't replied.

I guess since they don't know the light bill in advance, it can't be paid with sales revenues. And the copier bill is based in part on # copies, which they don't know in advance, so it can't be paid with sales revenues, and they sure don't know what their supplies expense will be either, so they can't use sales revenue to pay for them either.

It's really amazing.

Do ya think that they'll use information to acertain their best estimate of the light bill, copier expense, and supply costs ... and then make sure they're charging enough to cover these costs?

What makes income tax costs any different?

"I guess since they don't know the light bill in advance, it can't be paid with sales revenues. And the copier bill is based in part on # copies, which they don't know in advance, so it can't be paid with sales revenues, and they sure don't know what their supplies expense will be either, so they can't use sales revenue to pay for them either."

You are right, Principled, this is certainly one of the more inane arguments the guardians of the status quo have put forth. And they keep using it, as if they think anyone with more than a 6th grade education would find it persuasive.

In fact, my experience with budgeting has taught me that corporate income taxes are relatively easy to project, provided that your sales forecast is reasonably accurate. IOW, it isn't the last revenue/expense item on the income statement that is challenging to predict, it is the first. Of course, using their ridiculous logic, that means that businesses shouldn't even try to forecast sales and that they are clueless as to how to price their products.