Originally posted by TheDarkside
Lemme ask this then, so I understand things clearer: You take funds from state treasury and build a steel mill. Now you use same funds to buy resources to produce steel. Now you sell finished steel product to world market. Do you get entire profit of this steel?
State builds a factory and buys raw material. The end product is exported (or sold to domestic pops, doesn't matter in game terms) and that income is given to pops. State taxes that income, so it is divided between state and people.