example of gross profit The marxist theory holds that the profit under the capitalist system is the transformation form or phenomenon of surplus value, which manifests as the balance of commodity value over cost price. That is, the total amount of the proceeds of the sale of the goods by the capitalist exceeds the balance of his prepaid capital. Profit from a home variable capital purchase Labour created in the process of production of surplus value, also is the surplus labor hiring workers create surplus value, can change capital proliferation. But it is manifested in the phenomenon as the capital increase of capital of capital of capital. Philip Hammond has been trying to persuade conservatives that tax increases and spending cuts are needed to reduce the deficit. That does not stop Mr Draghi from warning that inflation is still being affected by a sluggish wage growth, which is now much slower than the "post-recession recovery". On Wednesday, the U.S. house of representatives passed a revised republican tax reform bill. U.S. President Donald trump has called the tax reform a historic victory, and lower regulation would be good for the economy. The tax reform bill is the largest U.S. tax reform in three decades and the first comprehensive tax reform.