• About
  • Contact
  • Editorial
  • Policies
  • Archives
Angry Bear
Relevant and even prescient commentary on news, politics and the economy.
  • US/Global Economics
  • Taxes/regulation
  • Healthcare
  • Law
  • Politics
  • Climate Change
  • Social Security
  • Hot Topics
« Back

Corporate Profits and Corporate Taxes

Dan Crawford | May 4, 2012 9:27 pm

Taxes/regulation

by Mike Kimel

Corporate Profits and Corporate Taxes

Based on a comment by reader Troy, the following graph from FRED, posted without comment:

Figure 1

Tags: Presimetrics Comments (4) | Digg Facebook Twitter |
4 Comments
  • sammy says:
    May 4, 2012 at 10:35 pm

    mike,

    It’s pretty simple.  Multinationals like to realize their profits, if possible, where the tax rate is lowest.   Quiz:  which would you rather collect:  0% of 36% of profits or 15% of 15% of profits.

  • sammy says:
    May 4, 2012 at 10:39 pm

    It’s simple.  Multinationals like to realize their profits where the tax rate is lowest.  So…… if you are a country, what whould you rather have:  0% of 39% of profit, or 15% of 15% of profits?  Take your time…..use a calculator if necessary…..

  • SKG says:
    May 4, 2012 at 11:08 pm

    Log scale would be more useful…

  • Tim Worstall says:
    May 5, 2012 at 4:36 am

    Two possibly interesting questions.

    1) Is CP including both S and C corporations? For only one of the two even pays the corporate income tax that makes up FCTAX and the other pays regular income tax. And yes, there has been a large structural change in recent decades, the make up of S and C corporations has changed.

    2) Globalisation. We know that a large number of large companies now make much of their profits outside the US. This is included in CP. However, such profits are:

    a) Subject to foreign tax and US corporate income tax is only levied on the difference between foreign tax already paid and US tax rates. So even if the corporate tax rate was the same the world over and no one ever dodged any at all then FCTAX would be falling in relation to CP over time. Because foreign profits of US corporations would be paying tax in other countries, not the US.

    b) The offshore deferment.

    Would be very interesting to see properly adjusted numbers….

Featured Stories

Black Earth

Joel Eissenberg

Macron Bypasses Parliament With ‘Nuclear Option’ on Retirement Age Hike

Angry Bear

All Electric comes to Heavy Equipment

Daniel Becker

Medicare Plan Commissions May Steer Beneficiaries to Wrong Coverage

run75441

Contributors

Dan Crawford
Robert Waldmann
Barkley Rosser
Eric Kramer
ProGrowth Liberal
Daniel Becker
Ken Houghton
Linda Beale
Mike Kimel
Steve Roth
Michael Smith
Bill Haskell
NewDealdemocrat
Ken Melvin
Sandwichman
Peter Dorman
Kenneth Thomas
Bruce Webb
Rebecca Wilder
Spencer England
Beverly Mann
Joel Eissenberg

Subscribe

Blogs of note

    • Naked Capitalism
    • Atrios (Eschaton)
    • Crooks and Liars
    • Wash. Monthly
    • CEPR
    • Econospeak
    • EPI
    • Hullabaloo
    • Talking Points
    • Calculated Risk
    • Infidel753
    • ACA Signups
    • The one-handed economist
Angry Bear
Copyright © 2023 Angry Bear Blog

Topics

  • US/Global Economics
  • Taxes/regulation
  • Healthcare
  • Law
  • Politics
  • Climate Change
  • Social Security
  • Hot Topics
  • US/Global Economics
  • Taxes/regulation
  • Healthcare
  • Law
  • Politics
  • Climate Change
  • Social Security
  • Hot Topics

Pages

  • About
  • Contact
  • Editorial
  • Policies
  • Archives