Tax Follies Continued – we are underpricing our government’s value

To further the conversation that I started on May 22 with this post Good Times were fueled by government taxing and spending supporting a vibrant private sector I offer this chart that shows the diminution of corporate taxes as a percentage of federal revenue since 1950. That beige stripe that has narrowed over the last 60 years represents corporations and their shrinking contributions. Corporations do contribute about half of payroll taxes but overall their contribution is down from 32% in 1950 to 17% now while their profits have gone up exponentially. So much so that a company like Apple can have $102 billion parked offshore.

Individual taxes have increased from 45% to 63% although individual incomes have on the whole stagnated since 1970.

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