Quote:I.e., it is taxed on before-tax profits. How does this make what I said wrong? The corporation raises it's before-tax profits to compensate for the taxes and keep the after-tax profits the same. It does that by raising prices.

Don't have time to explain it in detail... but just look at an 1120...


Mathematically, you can't get out of an income tax by simply raising the cost to the consumer. The revenue would just be taxed at that increased cost you dumped trying to get the tax back. It's easy to figure out if you just look at the form and think it through...


Looking at an income statement, ie profit/loss statement would show the same thing. You can Google those too.

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