The Recent Surge in Corporate Profits and Tax Revenue

Research Report

The Recent Surge in Corporate Profits and Tax Revenue

Abstract

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.

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.