For example, say that the company makes $100 in operating income and pays 35% in tax. Thus, they pay $35 in tax and have a net income of $65.
If they have to pay you $20 for burning alive, they have an operating income of $80. Thus, they’d pay $28 in taxes (a $7 reduction from earlier) and have a net income of $52 (a reduction of $13).
In effect, the $20 is paid as 35% out of lower taxes and 65% out of lower net income.

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