Corporate profits

Corporate income and taxes – Center for American Progress

As middle-class and low-income Americans struggle to get by, corporate profits skyrocket. In 2013, after-tax corporate profits consumes a record 11.2 percent of total national income. Between 1946 and 2010, after-tax corporate profits consistently remained below 10% of national income, but 2013 was the fourth year in a row that corporate profits exceeded 10% of national income.

Meanwhile, only corporate taxes constituted about 10% of total federal revenues collected in fiscal 2013, which is well within their average contribution since fiscal 1980, but down sharply from previous decades, when companies contributed double or three times that percentage.

CorporateProfitsTaxes_fig2

The claim that taxes are sort of “crushing“Corporations are going backwards — corporations couldn’t survive without taxes. To cite just a few examples, the federal tax fund education and coaching for the American workforce, a transport network to deliver products to market, a navy to keep shipping lanes safe from piracy in the world, and a legal system to protect Copyright and patents.

While the federal tax code has many flaws, it does not prevent businesses from competing in the global economy. Indeed, American companies are doing better than ever.

Harry Stein is the associate director of tax policy at the Center for American Progress.