Corporate Tax Revenue By Year Is Down Suggesting Economy Is Weakening
If the economy is booming tax revenues rise as companies generate greater revenue, resulting in them paying more in taxes. If the market is rolling over, the effectiveness of corporate taxation drops as companies close up shop and stop paying taxes.
Corporate Tax Revenue By Year Shows Economy is Rolling Over
In 2014 tax revenues were about $55 billion. In 2015 tax revenues were about $57 billion. In 2016 tax revenues were about $60 billion. In 2017, tax revenues have plunged to about $50 billion.
The last time we saw local and state tax revenues roll over like this was in late 2007 and early 2008.
Corporate tax revenue by year has turned down prior to every post-WWII recession. It suggests that America’s corporations are experiencing a deterioration in earnings.
With financial indicators flashing warnings signs, it seems like the US market is heading toward big trouble rather than revival.
Corporate tax revenues by year are difficult to fake. The money either came in the door, or it didn’t.
Despite a surge in optimism after the election of President Trump, nominal GDP growth in 2016 was just 2.95% making it the second-worst year on record since 1959.
Each time corporate tax revenue by year declines, the stock market sells off.
In its latest report, the Congressional Budget Office said the tax income of the government is currently currently running -3% below projections within the previous eight months, which works out to a shortfall of as much as $70 billion.