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, thus their wages are not taxable. The Feds believed that the Sixteenth Amendment altered this such that they could indeed tax wages, but there is no basis for this belief, since it still only refers to income, which the Supreme Court already defined in previous decisions to exclude wages.
