<$BlogRSDURL$>
Return to Main Page | Ragout: Corporate Tax Payments Fall Off a Cliff
Ragout
A Spicy Stew of Economics, Politics, Data, Food, Carpentry, etc.
 
Thursday, July 15, 2004

Corporate Tax Payments Fall Off a Cliff


If corporations were still paying taxes at the 1999 rate, the federal government would have collected about $100 billion more in taxes last year, and the budget deficit would be over 25% smaller.

No one is exactly sure why tax collections from corporations have fallen so precipitously, but there are two main reasons:
* An annual $50 billion or so of the decrease is due to corporate tax cuts included in the 2001 and 2003 tax bills (mostly greater write-offs for new investment). Source: CBPP.

* Much of the rest is probably due to increasing use of tax shelters and various techniques for avoiding and evading taxes.

Paul Krugman wrote a few years ago, "Tax receipts this year are falling far short of expectations, even taking the recession into account; my bet is that it will turn out that newly aggressive tax avoidance by corporations (and wealthy individuals) is an important part of the story. And it will get worse next year." Now, with corporate profits soaring, it's becoming clear the Krugman's prediction was right.


Posted with Hello

Source: Congressional Budget Office (CBO), and BEA National Income and Product Accounts (NIPA).

Note: Total corporate profits and tax payments from NIPA. NIPA tax payments include state & local taxes, "taxes" paid by the Federal Reserve, and some other amounts. CBO figures are for federal corporate income tax only. The CBO tax rates divide fiscal year taxes by calendar year profits.
 
|










































Number 1 in Ragout Economics!

ARCHIVES
March 2004 / April 2004 / May 2004 / June 2004 / July 2004 / August 2004 / September 2004 / October 2004 / November 2004 / December 2004 / January 2005 / April 2005 / May 2005 / June 2005 / July 2005 / August 2005 / September 2005 / October 2005 /

LINKS
First Team
Angry Bear
Atrios
Crooked Timber
Brad DeLong
Econbrowser
Economist's View
Freakonomics
Mark Kleiman
Nathan Newman
Political Animal
Max Sawicky
Brian Setser
Sock Thief
Talking Points Memo
Tapped
Matthew Yglesias

Second Opinion
Stephen Bainbridge
Marginal Revolution
Andrew Samwick
The Volokh Conspiracy

Third Way
Fafblog
NewDonkey

Fourth Estate
Economic Reporting Review
New York Times
Slate
Washington Post

Fifth Republic
Ceteris-Paribus
Econoclaste
Le Figaro
Le Monde

Sixth Sense
Deltoid
The Intersection
In the Pipeline
What's New

Politics & Polls
Daily Kos
Donkey Rising
Electoral Vote Predictor
MyDD
PollingReport
PollKatz
Rasmussen Tracking Polls

Other
Art Sucks
Enzo Titolo
L’esprit d’escalier
A Level Gaze
Approximately Perfect


EMAIL
ragoutchef at yahoo dot com

[ATOM]

Powered by Blogger