When profits are made on the market as a consequence of voluntary exchanges, it means both parties to the exchange make a profit (or else expect to make it), otherwise the exchange obviously would not take place. There are two parties making a profit because they both perceive what they are giving up (their costs) to be of lesser value than what they are acquiring in exchange. This is a key thing to understand about free markets. In every voluntary exchange there are two parties profiting. So whenever you make a purchase of something you like, you're making a profit. You are letting go of your money because you obviously perceive the thing you are obtaining to be of greater value. And the difference between all the enjoyment that this something is capable of delivering and the money you have paid is your profit. It is impossible to measure it, but this does not make it any less of a profit.
In any case, all profits are impossible to measure. This concept might be a bit difficult to grasp at first because you have been taught all your life to view profits as a figure businesses report at the end of their fiscal year. But of course money has no value in and of itself. You can't eat or drink it and it will not give you a lap dance, no matter how hard you try. What gives money its utility is the services it provides, its purchasing power. It is the same with profits. People do not seek to make a profit to create a heap of paper money in their back yard, they want stuff and services and all the rest of it. So when corporations report their earnings, it doesn't really have much in-depth meaning. They are just abstract numbers. Not that money is not important, it's the foundation of modern civilization, but it does not tell us much about the nature of profits.
If capitalists were to report their real profits, they would send in the following report: »kitchen table, new manufacturing tool, microwave, 2 week vacation with family, roof tiles, garden hose, new Xerox for office, 7 whisky shots, taxi home, flowers for wife« and so forth. In other words, all the things that they have bought with the money. These are the real profits and they are impossible to measure because you cannot measure utility.
And here is another example. When I go after a girl, I work pretty damn hard to get her (OK maybe not every time but that's beside the point). I try to entertain her, push all the competitors away and if I can make her laugh AND make sure she doesn't notice that other guy who is trying to flirt with her and is actually a bit better looking than me (though not much!), I get my reward. My »costs« are all of the above (hard work, right) and the benefits, i.e. my »profit« is I get to enjoy a few kisses here and there and a few other benefits of an exclusive kind. Yes, I do make a profit, and through a voluntary exchange too!
So now the obvious question is why should any third party be entitled to a part of my profit. Why should any third person or group of people be entitled to a part of the benefits me and you make by making a voluntary exchange. If the government was consistent in extracting taxes from our profits, you should give them 20% of all the enjoyment you get above the costs that you gave up in every single voluntary exchange.
So next time, before you argue in favor of taxation of profits, think again. And beware, the government might just break into your home and demand to be a part of all the exchanges you are making with your girlfriend. And why? Why of course, because you are both profiting, you capitalist swines!
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