The Decline of Corporate Income Tax Revenues

http://www.cbpp.org/10-16-03tax.htm

- Treasury Department figures show that actual corporate income tax revenues fell to $132 billion in 2003, down 36 percent from $207 billion in 2000.

- As a result of these low levels, corporate revenues in 2003 represented only 1.2 percent of the Gross Domestic Product (the basic measure of the size of the economy), the lowest level since 1983, the year in which corporate receipts plummeted to levels last seen in the 1930s.

- Corporate revenues represented only 7.4 percent of all federal tax receipts in 2003. With the exception of 1983, this represents the lowest level on record (these data go back to 1934).

- much more . . .

http://www.cbpp.org/10-16-03tax.htm

Grrrrrrr....

It is an unsustainable idea in a country of 300 million people because it assumes the "trickle down" effect will be evenly distributed. With racial prejudice endemic in this country, does anyone really believe an even distribution will be possible coming from the private sector? No, of course not. It's time our leaders stop lying to us.

"does anyone really believe an even distribution will be possible coming from the private sector? "

The main difference between us and them.
They DON'T WANT an even distribution of wealth! They don't want fairness. They prefer the free market to decide what people get...regardless. They see no role for government in this area. Everyone needs to understand this main point about the r/wingers before they can understand anything else.

If we fail to disburse social services evenly, we will eventually reach a point of negative returns. The Republican model can never be sustained over a long period of time because it creates inequities which will have a growing adverse effect on "normal" society. Crime rates will skyrocket to the point where no one will feel safe without body guards. I've actually lived in such a society. In Panama, after the bombings, poor people would just go in and raid restaurant customers. To my knowledge, no one was killed, but the running joke was that you had better go out with your best underwear because they made you strip down to your boxers to make sure you weren't hiding any rings or money.

Imagine if this method of operation was applied to businesses in the U.S., how it would affect downtown areas. It is sheer folly to assume it couldn't happen here when everything else that applies to banana republics is happening in the U.S. already.

that causes random violence at the bottom."

I guess they forgot to tell us something quite important. Corporate profits are tanking, and have been for 20 years. Tax cuts and cheating and virutal cheating thru accounting legerdemain that is considered OK don't explain neary any of the plunge in corporate tax receipts.

It's well worth remembering that corporations now account for more of the total economic activity than ever, and that continues to rise inexorably. Every store, restruant and even mortuary you go to is now probably a corporate entity.

Yet, tax receipts trend ever lower. As I said because profits are dismal. I know this flys in the face of everything you hear concerning stocks and the economy. Still, how else do you explain it?

The ironys involved in the dearth of profit at the very time that corporations seem at their height that explains a big part of our current dillema. The 20 year, or longer, trend to 'pro bussiness' 'supply side' thinking has coincided with the now lowest rate of corporate profits of all time, save the depth of the depression. This is a long established trend now which shows now signs of reversing. The facts are obvious, the denial, total. A disconnect of monumental proportion.

The aim and result of the ideology of maximized 'shareholder value' has been to transfer wealth to the top. For while profits as a percent are low the fact is that said profits are flowing into the hands of a precious few. (Sorry for this shorthand sort of Maxist sounding talk. I'm the furtheres thing from a Marxist)

The biggest wealth transfer in history is now almost complete. When the bad times come, and certainly they will as it is inevitable that Americans will have to sharply cut back their mad consumption, the few will be sitting on virtually all assets.

Fabulous post, rapier. Great summary of the report.

Your points need to be placed front and center of all debates concerning taxes, deficits, and federal funding. Something hugely unfair is happening and people CAN understand this. This is big part of the undermining of our way of life.

There's no need to hate or bash corporations, just insist they pay their fair share. Corps provide jobs, they are comprised of people and are essential to our economic livelihood. But they need to be saved from themselves BEFORE they destroy themselves and take the rest of us with them.