Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
As what was said in post 27, taxes aren't just like any other expenses.
Yes, they are. There is no effective difference between taxes and expenses. They both reduce your bottom line. They both impact your stock price. They both impact your profitability projections. They both impact earnings per share. They both impact your ability to pay a dividend.
Quote:
Taxes are on profits, and profits are calculated at the end of a tax year by adding up all the revenue and subtracting all the costs.
This is not true. I have experience pricing products and taxes were always part of the pricing formula. Any business that waits until the end of the year to determine pricing, costs and taxes is foolish.
Quote:
When a product or service is sold the company doesn't really know yet how much profit, if any, it will have at the end of the year, so it doesn't know what the tax will be, so how can it adjust prices?
..
What a foolish statement. Pricing products is proactive and considers all possibilities including projected taxes at all levels.
Quote:
I think you are starting to see how silly this idea of raising prices to cover taxes can get.
I think you have no business experience and we are starting to see how silly your posts are.
I hope people realize that taxing corporation tax is ridiculous as consumers would end up paying them.
This is true. Corporate taxes only make politicians look good. 100% of the $2 billion income taxes paid by Pepsi are paid by consumers. 100% of the $2.1 billion income taxes are paid by consumers.
This is true. Corporate taxes only make politicians look good. 100% of the $2 billion income taxes paid by Pepsi are paid by consumers. 100% of the $2.1 billion income taxes are paid by consumers.
It costs about $50 for Apple to make an iPhone that they charge hundreds of dollars to consumers. Do you really think that if Apple didn't have to pay taxes, they'd pass the savings onto consumers? Of course not. Prices are determined by supply and demand and the price of an iPhone has been determined to be the most efficient price -- lower would increase demand but not enough to offset the lower price; and higher would bring in more per unit but result in lower sales. There is no reason to pass tax-savings onto consumers, which means the cost of taxes is paid from stockholder profits, not consumers.
It costs about $50 for Apple to make an iPhone that they charge hundreds of dollars to consumers. Do you really think that if Apple didn't have to pay taxes, they'd pass the savings onto consumers? Of course not. Prices are determined by supply and demand and the price of an iPhone has been determined to be the most efficient price -- lower would increase demand but not enough to offset the lower price; and higher would bring in more per unit but result in lower sales. There is no reason to pass tax-savings onto consumers, which means the cost of taxes is paid from stockholder profits, not consumers.
LOL! Seriously? It only costs $50 for Apple to make an iPhone????
Lower the rate and cut the loopholes. I think that's something every single person in the country can get behind (besides the tax-dodging companies and their puppet politicians).
It costs about $50 for Apple to make an iPhone that they charge hundreds of dollars to consumers. Do you really think that if Apple didn't have to pay taxes, they'd pass the savings onto consumers?
This is pretty easy to answer. Look at the prices charged for an iPhone with VAT tax and without:
The VAT is basically a sales tax. Of course the price with a sales tax will be higher than without. That doesn't mean that the phone would cost less if Apple didn't have to pay corporate income tax.
In a “VAT” system, the amount of tax due on each particular item is calculated at every step of the process of manufacturing a product or providing a service. Then, at each stage, the partial producers (for example, suppliers of raw materials or subcontractors along the way) pay their “VAT” (calculated on their profit) and pass along that amount in the price they charge their customers...
The crucial feature – which makes VAT different from a sales tax – is that the tax gets levied at each step of the way
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
