U.S. Corporate Profits as % of GDP
U.S. Corporate profits as a % of GDP, 1980 - 1922
Since 1980, corporate profits have increased as a % of GDP 46.15. It need to be put in context. In 1980, nominal U.S. GDP, was $23.0 trillion.1U.S. GDP by Year, Compared to Recessions and Events (thebalancemoney.com) That is a huge increase in corporate profits in absolute terms.
In terms of breaking down the sources of these increases, bear in mind that since 1980, the maximum corporate tax rate has decreased from 46% to 21% which means a big chunk of the increase is simply due to the reduction in the tax rate.2Federal Corporate Income Tax Rates – Corporate Tax Rate & Jobs – ProCon.org
U.S. Maximum Corporate Tax Rate
Maximum U.S. corporate tax rates, 1968-Present
