What is the estimated average percentage of business income taxes embedded the price of a product?

Question

What is the estimated average percentage of business income taxes embedded the price of a product?

Answer 1

That depends upon the profitability of the business that produces the product.  The American auto manufacturers are bleeding money and probably pay nothing in income taxes right now so the percentage there would be 0%.  A company like Microsoft makes money hand over fist with a profit margin of around 23%.  Their embedded income tax cost could run close to 8% or 9%.  Most manufacturers have profit margins in the region of 6% to 10% at most so their embedded income tax cost would be between 2% and 3%.