The Recent Surge in Corporate Profits and Tax Revenue
Publication Date: November 2006
Publisher(s): Tax Policy Center
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Tax Policy; Tax Distribution and Economic Trends; Savings; Wealth and Retirement
Before-tax corporate profits of nonfinancial corporations surged to 7.8 percent of net national product in the second quarter of 2006, having risen steadily from a post-war low of 3.6 percent, in the fourth quarter of 2001, after a stock market plunge. We find that the income of corporate capital owners of nonfinancial corporations, net corporate tax, has remained much steadier than corporate profits.