I guess I'm not smart enough to understand your post. My gross profits are figured before expenses. So I need to be taxed on my gross? You've never been in business, I can tell.
You aren't taxed based on total sales, but only on profits. You deduct the wholesale price that you paid for your inventory, plus other business expenses (salaries paid to employees, rent, etc.). After all that, you arrive at your net income, based on which you calculate income taxes due.
"Income" is only that which is received above your investment in labor, money, and/or materials. Under traditionally accepted definitions (upheld by the US Supreme Court), wage earners have no "income," since they are paid a salary exactly equal to the value of their labor (one's wages are mere compensation, not income), thus wages are not taxable. The Feds believed that the Sixteenth Amendment altered this state of US law such that they could begin to tax wages, but there is no basis for this belief, since the amendment still only refers to "income," which the Supreme Court already defined in previous decisions to exclude wages.
