Net v. gross

Testifying before C0ngress is hard, I guess.  When asked how much profit the manufacturer made on each set of EpiPens, the CEO said $100.  Turns out, that number assumes a tax rate of 37.5%, which the manufacturer doesn’t actually pay.  “Mylan Backs Off On EpiPen Estimate,” The Wall Street Journal, September 27, 2016 A1.

I guess Congress should have asked,” What’s your pre-tax profit margin on EpiPens?”  One would think the folks who write the Tax Code would be more precise.  Or maybe not.

Is this within the information governance realm?  What risk is there in the imprecision of language, or confusion, in communication?

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Filed under Accuracy, Communications, Data quality, Definition, Governance, Information, Value

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