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: 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
printable version - js reader version - email this article - 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:
Share on: Twitter, Facebook, Google+

add your comments

Local News

Public art project aspires to save California N18 3:42PM

Songwriter, Author, Philanthropist P F Sloan Died On Nov 16 N17 4:48PM

A Plea For Support From Will B N15 4:23PM

10 Shocking Realities of the TPP N09 4:47PM

KPFK needs your VOTE ! or lose it. O31 4:51PM


KPFK is losing and reducing it's main programmers, so can Fresh ones emerge there instead? O26 5:58PM

Fall 2015 National Immigrant Solidarity Network Monthly News Alert! O26 7:58AM

A master-plan is needed to support renter protections in Northern California, & elsewhere O25 9:48PM

KPFK Updating: a coup? or failure? or.... O25 5:04PM

Kapparot Chicken Slaughter Causes Outrage: Activists Demand Change O06 1:59PM

Update on WHAT IS HAPPENING AT KPFK and what can be done & elections O05 12:39AM

A Letter (sent) to L.A. Slut Walk O03 12:51PM

Protesters Enact Symbolic "Die In" to Unwelcome Narendra Modi to Silicon Valley S28 3:52PM

More Local News...

Other/Breaking News

MSP Hack VIP Generator Diamonds and Starcoins N28 5:36PM

MovieStarPlanet Hack Generator N28 5:33PM

Parangon d'une grande infestation N26 11:03PM

The Shortwave Report 11/27/15 Listen Globally! N26 3:56PM

An humble opinion N26 1:59PM

Activistas de los Derechos Humanos Unen Fuerzas en Honor al Derecho a la Democracia N25 3:13PM

VIDEO: What "Orwellian" Really Means N25 1:49PM

US Forces South Africa To Import Sick Birds N25 9:10AM

Presidential Candidates Criticize Pfizer Merger N25 8:19AM

Turkey's Downing of a Russian Fighter Jet Moves the Doomsday Clock Very Close to Midnight N25 5:46AM

NATO is harboring the Islamic State N25 4:43AM

Paraphysique de l'Etat d'urgence N25 1:23AM

Casino Capitalism and Profit Maximization N25 1:18AM

Democracy Now, Military Times, Guardian Articles On Soldiers Refusing To Drop Drones etc N24 9:10AM

First Amendment Under Covert Attack N23 6:27PM

Insanity of the police/fbi community N23 1:35PM

No to Racism and War! N23 6:02AM

(A-Radio) Northern Europe 1: Musta Pispala festival in Finland N23 12:36AM

Paranoïa ou la vérité d'une société N22 11:54PM

Wicked fbi and their mischievous police friends N22 11:22AM

“None Dare Call It Conspiracy:” How U.S. Elites Made Islamist Militants the New Red Menace N21 5:05AM

Monsanto Patenting World's Seeds, Controlling World's Food, Causing Cancer, Killing Bees, N20 9:59AM

Indigenous Hispanic areas also Economic Rights US N20 8:14AM

Paraphysique de l'hybris pirocratie N19 11:44PM

The Shortwave Report 11/20/15 Listen Globally! N19 5:07PM

(A-Radio) Eastern Europe 5: Anarchist Black Cross Warsaw N19 2:20PM

Paraphysique de lapalissade N19 6:17AM

Paris Attacks - Bourgeois Terrorism N18 2:03PM

More Breaking News...
© 2000-2003 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