>The corporate tax rate schedule is applied to income before taxes, and >as a percentage of net income before taxes. This kind of makes income >tax expense a special kind of expense. Consider for example, if regular >expenses go up in relation to sales, the reduce income would cause >income taxes expense to go down all be itself, partially offsetting the >need to increase sales prices to cover income tax expense. If regular >expenses go up to the point they exceed revenue; the resulting loss >would eliminate income tax expense for that year. The loss could be >carried forward to offset future income, as well.
I understand what you are saying, yet, like many answers from Microsoft Tech Support, it is technically accurate, but totally misses the point of the question. Look at it this way, if corp taxes go up, are they going to borrow money to pay for it, or got to the stock holders for a greater investment? No, it will be reflected in the price of their product. Now accountants can juggle money from account to account and give it all kinds of names, but for a corp to survive, if more money is going out, more must be coming in. They can't just manufacture money to pay the taxes. People have gone to jail for manufacturing money. If you are trying to say they are going to take it from their profits, it may be for a short term, but not for long if the management intends to keep their cushy jobs. Larry Miller --- StripMime Report -- processed MIME parts --- multipart/alternative text/plain (text body -- kept) text/html --- _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
