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To: Willie Green

"There is no way the company could know what their tax obligation would be beforehand because market pricing does not guarantee a profit will be made."

Taking your logic to its conclusion, there is no way that a company could ever do a budget, since there are no guarantees that ANY budget assumption will be realized. Companies would just say to their investors "wait until the end of the year, and we will tell you what our financial performance has been. Don't expect us to give you or the market any predictions."


98 posted on 09/29/2004 12:27:04 PM PDT by phil_will1
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To: phil_will1
Taking your logic to its conclusion, there is no way that a company could ever do a budget

Take a look at a corporate income statement sometime,
corporate income tax obligations are NEVER included as part of "cost of goods sold".
What you WILL see is "Profit Before Income Taxes" and "Profit After Income Tax"
Corporate income tax is merely government confiscation of a portion of the profits (if any) that are earned, they are NOT a "cost" that can be "imbedded" and "passed along" to the consumer.

QED

99 posted on 09/29/2004 12:41:21 PM PDT by Willie Green (Go Pat Go!!!)
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