imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Subscribe Calendar Publish RSS
latest news
best of news



CopWatch LA


A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

The Great Tax-Cut Experiment and Corporate Taxes as % of Profits

by Gerald Friedman and Salvatore Babones Saturday, Feb. 23, 2013 at 11:12 AM

Comparisons with Other Countries: Americans pay a smaller proportion of total income in taxes than do people in any other advanced capitalist economy. as in Western European countries.

← Older posts
The Great Tax-Cut Experiment
Posted on February 21, 2013 by Marc
to read Gerald Friedman’s “The Great Tax-Cut Experiment” from Dollars and Sense, January/February 2013, click on

Comparisons with Other Countries: Americans pay a smaller proportion of total income in taxes than do people in any other advanced capitalist economy. As recently as the late 1960s, taxes accounted for as high a share of national income in the United States as in Western European countries. After decades of tax cuts, however, the United States now stands out for its low taxes and small government sector. (See Figure 2.)
Figure 2: Tax Revenue as a Percentage of GDP, 2008

Higher Growth When Taxes Are Higher: On average, the economy has grown faster during presidential administrations with higher tax rates on the richest Americans. Growth was unusually slow during George W. Bush’s two terms (Bush II) and during Obama’s first term, when the Bush tax cuts remained in effect. On average, every 10 percentage-point rise in the average tax rate on the richest has been associated with an increase in annual GDP growth of almost one percentage point. (See Figure 3.)

Declining Tax Rates Haven’t Stimulated Investment: Cutting taxes on the richest Americans has not led them to invest more in plant and equipment. Over the past 50 years, as tax rates have declined, there has been no increase in investment spending as a percentage of GDP. (The flat trend line shows that changes in the highest marginal income-tax rate have not affected investment much, one way or the other.) Instead, the investment share of the economy has been determined by other factors, such as aggregate demand, rather than tax policy. (See Figure 4.)

Lower Taxes, Slower GDP Growth: Despite lower and declining tax rates, especially on the rich, the United States has had slower productivity growth over the last several decades than other advanced economies. Overall, lower taxes are associated with slower growth in GDP per hour worked. A 10 percentage point increase in taxes as a share of GDP is associated with an increase in the productivity growth rate of 0.2 percentage points. (See Figure 5.)

GERALD FRIEDMAN is a professor of economics at the University of Massachusetts-Amherst.
SOURCES: Tom Petska and Mike Strudler, “Income, Taxes, and Tax Progressivity: An Examination of Recent Trends in the Distribution of Individual Income and Taxes” (Statistics of Income Division, Internal Revenue Service, 1997); Thomas Hungerford, “Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945” (Congressional Research Service, 2012); Economic Report of the President, 2012; Bureau of Economic Analysis (; Organization of Economic Cooperation and Development, OECD STAT.


Corporate Taxes as % of Profits (1950-2010)

Posted in 2011 | Leave a comment
U.S. Corporate Tax Rate Plunges To 40 Year Low Of 12.1 Percent
Posted on February 16, 2013 by Marc
By Pat Garofalo on Feb 3, 2012 at 11:20 am

In recent decades, corporate tax revenue has plunged, falling from about 6 percent of gross domestic product in the 1950?s to less than 2 percent today, due to a proliferation of corporate tax breaks and the use of offshore tax havens. According to the Congressional Budget Office, in fact, corporate tax receipts as a share of corporate profits have hit their lowest point in 40 years:

Corporate tax receipts as a share of profits are at their lowest level in at least 40 years.

Total corporate federal taxes paid fell to 12.1% of profits earned from activities within the U.S. in fiscal 2011, which ended Sept. 30, according to the Congressional Budget Office. That’s the lowest level since at least 1972. And well below the 25.6% companies paid on average from 1987 to 2008.

Report this post as:

Local News

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

Last of California's nuclear power plants is on its way out J30 3:44PM

Patrisse Khan-Cullors explains why Black Lives Matter J26 7:02PM

Women's March L.A., 2018 J24 4:39PM

The case for US government sanctions on Israel J23 5:36PM

 Women of LA Rise Again to Denounce Trump Photoset 4 J22 9:07PM

Women of LA Rise Again to Denounce Trump Photoset 3 J22 8:24PM

Women of LA Rise Again to Denounce Trump PhotoSet 2 J22 7:36PM

Women of LA Rise Again to Denounce Trump PhotoSet 1 J22 7:14PM

Women's Political Representation & Electoral Reform J21 12:43PM

Trial Starts for Woman with Erb’s Palsy Punched in Face Repeatedly by LAPD Officers J10 1:38PM

Dear District Attorney Jackie Lacey, Prosecute Killer Cops, Signed: Your Constituents J09 10:09PM

Great solidarity action today J06 10:22PM

More Local News...

Other/Breaking News

what does a mexican driver's license look like? M18 12:10PM

One Way to Respond to Foreign Ops in Our Elections M18 11:54AM

Stratégie onirique du coup du monde M17 3:03AM

Tour Announcement: Whole Milk's California Cruising Tour 2018 M16 8:41PM

50 years have passed since the Kerner & McCone Commissions M16 6:21PM

Crash on the Horizon M16 9:45AM

Caribbean Religious Leaders Call for Debt Relief in Face of Disasters M16 7:28AM

America's judiciary is in collapse M15 8:53PM

Under the Gun in Ireland M15 5:37PM

The Shortwave Report 03/16/18 Listen Globally! M15 4:54PM

Travail de l'idéologie M15 12:02AM

Crisis 2.0: A Policy for the 99% M14 2:06AM

How fbi corrupts cjs M13 8:10PM

When Will the Me Too Movement Take on the New Age? M13 8:21AM

La société du plagiat compilateur M13 12:34AM

12 Step Programs Free Me From Addiction M11 1:53PM

Règlements de comptes à O.K. Corral M11 12:42AM

Video: "How Democracies Die," 1 hr 12 min M10 8:05AM

Debt, Corruption and Tax Policies Impact Poverty, Says Vatican at United Nations M09 11:13AM

Séparatisme de l'abîme M09 6:15AM

The Shortwave Report 03/09/18 Listen Globally! M08 4:15PM

Over 35 Years of Work for Individuals in California with Brain Disorders [Metal] M08 4:00PM

February 2018 Honduras Coup Again update M07 12:59PM

Authoritarian Capitalism M07 4:27AM

“Animaniacs in Concert!” with Voice Artist Rob Paulsen, Fri. March 30th in Downey, CA M06 2:45PM

Do Germans really want to align themselves with evil? M06 9:56AM

Housing is not just another commodity M06 8:08AM

Cartographie du morcellement unifié M05 11:08PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy