Taxing Matters

(1) Puzzling over a big divergence on corporate taxes. (2) Thanks to QE programs, Fed’s profits soared along with its balance sheet. (3) Fed’s profits included in NIPA measure of corporate taxes, not in IRS tabulation. (4) NIPA also includes corporate taxes paid to other taxing authorities besides the IRS. (5) IRS data suggest corporate federal tax rate well below 20%. (6) Work in progress. (7) S&P 500 tax data suggest big corporations aren’t free-loading on the tax system as much as widely believed.