Reading 33 - Equities as an Inflation Hedge into, understand, corporate, investor

Otabek

From CFA curriculum:
“Because corporate income and capital gains taxes are not indexed to inflation, inflation can reduce the stockholder’s after-tax return, unless this affect was priced into the investor’s return (through lower share prices) when the stock was purchased.”
I don’t quite understand this concept.
Let’s say in Year One Company A earns $100 in nominal profits which are taxed at a marginal tax rate of 10 percent. In Year Two lets assume that inflation is 20 percent and Company A reports nominal profits of $120.
Now in real terms the $100 and $120 of profits should be equivalent (if the $120 were discounted back to year one). But assuming that the extra profits kicks Company A into a higher marginal tax bracket the real value of the profits in Year Two will actually be less than $100.
Am I interpreting this correctly?