Proving that the corporations 32% in taxes, and employee costs are minimal (~10%)

Right. And consumers have never paid taxes, since whatever they submit to government is paid for by corporation whose sales go down due to consumers not having those dollars to spend. So corporations end up paying all the taxes!

Or, we could just look at taxes as being money taken out of the system, and recognize that paragraphs like the two above are ludicrous.

"President Soetoro" wrote in message news: snipped-for-privacy@a12g2000yqm.googlegroups.com...

Total ignorant nonsense. Same shit since Reagan started the destruction of America

"President Soetoro" wrote in message news: snipped-for-privacy@j39g2000yqn.googlegroups.com...

messagenews: snipped-for-privacy@a12g2000yqm.googlegroups.com...

Except that's not how it works. Learn something about accounting.

The very fundamental point you have missed is that corp taxes are paid on PROFITS, whereas employee costs are incurred even when not making a profit.

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You've missed the fundamental point that whatever they list in their financial statements as being taxes they pay, that money comes from the consumers who have bought the goods or services that the corp sells.

"Rod Speed" wrote in message news: snipped-for-privacy@mid.individual.net...

If you had a clue about accounting you would know that the tax comes from the company's profit.

Sales tax is paid directly by customers. Corporate tax come out of profit

Sid9 wrote

And that profit comes from what consumers pay for the goods and services they sell.

But still comes from what consumers pay for the goods and services that the corp sells.

"Rod Speed" wrote in message news: snipped-for-privacy@mid.individual.net...

If you had a clue about accounting you would know that the tax comes from the company's profit.

snipped-for-privacy@a12g2000yqm.googlegroups.com...

Neither payment of taxes nor payment of dividends is a true cost of business operations. The disutility of taxes is not born by the operating company but split between shareholders and consumers. And how these are born is discussed as tax incidence.

Today, I analyzed the 500 companies on the S&P 500 to quantify and qualify the index's metrics. Moreover, I also wanted to discern the weighted average gross margins, the weighted average pretax margins, as well as the weighted post tax margins (i.e. weighted net profit margins). Finally, I would also like to calculate the tax rate of the average S&P 500 company based on the differential of the weighted average pretax margins and the weighted average profit margins.

Here are my abbreviations that I¡¦m using: S = Sales (i.e. Revenue) COGS = Cost of goods sold WAGM = Weighted Average Gross Margin CSGADAI = Cost of Selling, General Administrative, Depreciation, Amortization, and Interest -?³ Basically, this is all costs excluding the COGS and Taxes. All these costs are deducted from revenue, just like the COGS, to arrive at the Net Income (NI). WAPTM = Weighted Average Pre-Tax Margin COT = Cost of Taxes WANPM = Weighted Average Net Profit Margin NI = Net Income (i.e. Profit)

Regarding my liberal use of the term ¡§Weighted Average¡¨ for my calculations as opposed to the ¡§Arithmetic Average¡¨: To understand this distinction, let¡¦s analyze the WANPM. The WANPM is calculated by summing the entire column of MS Excel which has the earnings of the companies. Note that some of the values maybe negative indicating a loss. The Earnings for each company is in Column E, and the Sales figures for each company is in Column J. Therefore, the WANPM is:

=SUM(E2:E501)/SUM(J2:J501)

Also, this method is more robust than simply averaging all the individual profit margins. As a comparison, the WANPM and the Arithmetic NPM are: 0.04924734 and 0.074364, respectively.

Using this WA approach, I figured out that the WAGM of the companies are: WAGM - WeightedGrossMargin 0.2739 WAPTM - WeightedPreTaxMargin 0.0728 WANPM - WeightedNetProfitMargin 0.0492

Therefore, the Income Statement for a representative company on the S&P 500 can be recreated who nominal revenue is $1. We have the following Income Statement, and at the end, we will solve the average tax rate for the representative company:

S 1.0000 (COGS) (0.7261) WAGM ¡V WeightedAverageGrossMargin 0.2739 (CSGADAI) (0.2011) WAPTM - WeightedAveragePreTaxMargin 0.0728 (COT) (0.0236)

---------------------------------------------------------------------------------------------- WANPM - WeightedAverageNetProfitMargin 0.0492

From a WAPTM of 0.0728, the company pays out 0.0236 in taxes. This implies that the average company pays 0.0236/0.07282.4% in corporate taxes.

Some insights that I¡¦d like to point out here is that the cost of the employees (i.e. the wages) is actually very small when compared to the other costs. The wages, which are a component of the CSGADAI, should only be about half of this entire figure, which would mean half of

0.2011, or about .10 the total revenues of a company. On the other hand, the COGS is .73. Therefore, it is not so valid to state that the wage costs or the tax costs are the biggest costs of a corporation.

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I think the 'cost of goods sold' probably includes some wages.