[justshutupandtakeit]

But you are not grasping the difference in the light bill and an income tax bill. A light bill is upon a Factor of production, energy. An income tax bill is NOT based upon a factor of production and therefore cannot be a "cost." ONLY factors of production have costs.

You are also confusing your income requirements to live with profit of a business. You must seperate the profit from your business from the amount which you must earn to live. Only by doing this will it become clear what the income tax is. If you were in a position where you COULD not change your price it would also be clearer. THAT is the market model.

[Principled]

"ONLY factors of production have costs."

And since you say my income taxes on my business aren't a factor of producton, then golly the income taxes that I pay are not a cost somehow.

Well Alice, I hate to tell you that your book does't model the real world.

I do pay my income taxes from my sales revenues and I do make my price higher due to the obvious and trivial fact that they are one of my costs.

Book formulas are intended to model and explain the real world. But when the real world is obviously different, it is easy to conclude that the model needs to be fixed.

Why are you so invested in a book model that is obviously not working?

[phil_will1]

"ONLY factors of production have costs."

When did you make that rule up?

So IOW sales and marketing, general and administrative, research and development are not "costs"? Aren't "costs" synonymous with "expenses"? Are you saying that none of those items, not to mention interest expense, are costs/expenses?

Since a service business has no "factors of production", does that also mean that it has no costs?