Profit Question

Discussion in 'Economy' started by Gungnir, May 4, 2008.

  1. Gungnir
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    Gungnir Member

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    Just to be clear

    Revenue is what a company brings in.
    Profit is the Revenue not spent by a company on Expenses.
    Profit Margin is the Profit divided by the Expenses.

    Profit can be used for capital development and further investments.
    That which is left from Profit is Income.

    Wages are not Income (per SCOTUS, unless you are the IRS) but a fair and equitable compensation for labor provided.


    Am I wrong on any of the above?
     
  2. Ravi
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    Ravi Diamond Member

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    Revenue is what a body brings in.
    Profit it the Revenue not spent by a body on expenses.

    Profit can be used for bodily development and further investments.

    So, yes, wages are income.
     
  3. cbi0090
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    cbi0090 Member

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    Your basically right but profit is not just used for capital improvement and investments it is also used to pay back loans, if it is a private company, or loans and share holders, if a public company. Loans and company shares are often dominated, depending on the size of the company of course, by pension funds, IRA accounts, etc. or basically retirement funds.
    Wages are an operating expense to the company.
     
  4. Paulie
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    Paulie Platinum Member

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    This is a good thread topic. I wanted to expand on the idea, so I made a new thread about it here in Economy. Hope you don't mind me possibly "jacking your swagger". It's something I've thought about for a while now myself.
     
  5. Care4all
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    Care4all Warrior Princess Supporting Member

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    FYI

    Yes, you are wrong on one thing....

    Profit margin: is the profit dollars divided in to the Total Revenues generated and not in to the Expenses. It is the percentage of your revenues retained in profit.

    Care
     
  6. indago
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    indago VIP Member

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    Black's Law Dictionary, second edition, 1910, declares a difference between the economic term "income", and the term "income" as used in the income tax, the economic term meaning the same as a revenue, or that which comes in, while the term used in the income tax means yearly profits.

    "We must reject in this case, as we have rejected in cases arising under the Corporation Excise Tax Act of 1909... the broad contention submitted in behalf of the government that all receipts - everything that comes in - are income within the proper definition of the term "gross income"" — United States Supreme Court
     
  7. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Income as used in the 16th Amendment means wages.

    More importantly the Government already has the right to tax with out the 16th Amendment. Section 8 Article I is clear, the Government can tax anything they want so long as it is uniform across the States.

    The argument fails when one tries to fight the IRS and the Government. It fails in all courts across the board. And it has failed for almost 100 years. Across every administration since Wilson's.

    The argument is not can the Government tax , it is what is reasonable for the Government to tax.
     
  8. Paulie
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    Paulie Platinum Member

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    No shit. That's why I'm making the argument about wage tax. It is unreasonable to take money from me when I traded an equal amount of labor to obtain that money. It would be no different if I changed your spark plugs and you mowed my lawn in return. Neither of us gained, because each of us had to give something up...either our time and labor, or money out of our pockets.
     
  9. RetiredGySgt
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    RetiredGySgt Platinum Member

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    And I disagree. The Government must have revenue to run. Apportioning amongst the several States did not work well and simply moved the burden of taxation to the States to pay the Federal Government. Which technically is a violation of the requirement that Federal revenue be uniform through out the States.

    You are basicly arguing for the elimination of taxes except on business and imports. What about a Sales tax? Why is that fair? Why does the State get to determine a percentage of every sale you paid for from your money, gained in what ever fashion, belongs to them?

    There is absolutely nothing wrong with Income Tax on wages earned. And the code even requires that you pay tax on your barter system, just isn't cost effective in the vast majority of cases to go after people that do not.

    Government exists and works for the people, making the people pay a reasonable share in taxes is legal and acceptable and a big reason Government does not tax more than they do. If they did the people WOULD vote them out and change the law.

    I suggest that in fact a majority of the American people agree that income tax IS acceptable, lawful and needed. I further suggest that the American people do in fact control the Government through Congress. Congress IS effected by the mood and opinions of the MAJORITY of the voting public ( including those able to vote that opt out) That would be why taxes go up and down. AND that would be why there has been no wide spread revolt by ballot against income tax.

    I further suggest that the recent CRIMINAL proceedings against Wesley Snipes and Cohorts is further proof the code does in fact explain how and why income is taxed. 12 Jurors AGREED that "BEYOND A REASONABLE DOUBT" those men evaded paying INCOME TAX.
     
  10. indago
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    indago VIP Member

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    RetiredGySgt wrote:
    Are you denying those factual statements?
     

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