Corporation Profits and Taxes in Prosperity

September 12, 1956

Report Outline
Business Profits and Taxes in the Campaign
Profit Picture of American Corporations
Tax Load of Corporations in United States
Corporation Taxes and Small Business Aid
Special Focus

Business Profits and Taxes in the Campaign

With republicans making national prosperity a major campaign appeal, Democrats between now and Nov. 6 are bound to hammer on the theme, stressed for three years, that the Eisenhower administration is dominated by big business and caters primarily to its interests. Adlai E. Stevenson, Democratic presidential nominee, already has indicated how he will respond to Republican boasts of good times. Returning Aug. 31 from a countrywide tour to confer with party leaders, he said that everywhere he went he found people concerned about “America's lopsided prosperity.” Stevenson added that the voters were “indignant about the highest cost of living in history” and “troubled about regional unemployment [and] the plight of the small businessman.”

Democratic Assault on “Lopsided Prosperity”

With retail prices at record levels and apparently embarked on a climb to new heights, the public is likely to pay closer attention than usual to what candidates have to say about business profits and taxes. Ordinary citizens may ask why the corporations which are making so much money cannot reduce prices of their products instead of constantly raising them. They may want to know whether the big corporations, despite high profits, are in line for tax reduction next year. Or will the 85th Congress reserve for small business and individuals any tax relief it is in position to grant? In the meantime, what is the actual profit-price-tax situation?

Near-Record Profits in 1955 and 1956

Combined profits after taxes of American corporations amounted to between $16 billion and $17 billion in each of the three years 1952–1954 and then jumped in 1955 to $21.1 billion. In the first and second quarters of 1956 corporate profits after taxes were accumulated at annual rates of $21.6 billion and $21.5 billion, respectively, for an increase of about 7.5 per cent over the first half of 1955.

ISSUE TRACKER for Related Reports
Taxation
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Jan. 16, 1998  IRS Reform
Mar. 22, 1996  Tax Reform
Apr. 06, 1990  How Fair Is the Nation's Tax Burden?
Aug. 28, 1987  Taxing Business Services
Oct. 17, 1986  Tax Reform In The States
Sep. 28, 1984  Tax Debate: 1984 Election and Beyond
Mar. 19, 1982  Tax-Exemption Controversy
May 19, 1978  Property Tax Relief
Apr. 07, 1978  Tax Shelters and Reform
Feb. 10, 1971  Property Tax Reform
Mar. 26, 1969  Tax Reform Pressures
Mar. 24, 1965  Excise Tax Cuts and the Economy
Feb. 15, 1961  Flexible Taxation
Apr. 02, 1959  State Tax Problems
Apr. 23, 1958  Tax Reduction, 1958
Aug. 14, 1957  Fast Tax Write-Offs
Apr. 10, 1957  Federal Payments in Lieu of Taxes
Sep. 12, 1956  Corporation Profits and Taxes in Prosperity
Mar. 16, 1954  Shares in Tax Relief
Nov. 21, 1953  Revision of Excise Taxes
Mar. 19, 1953  Federal-State Tax Relations
Oct. 01, 1952  European Taxes and Tax Evasion
Nov. 03, 1950  Excess Profits Tax
Feb. 01, 1950  Tax Loopholes
Jun. 04, 1949  Excise Taxes
Oct. 27, 1948  Postwar Sales Taxes
Aug. 29, 1947  Taxation of Family Income
Apr. 09, 1947  Income Tax Relief
Jan. 11, 1946  Taxation of Cooperatives
Oct. 16, 1945  Federal Taxes on Business
May 08, 1944  Postwar Taxes
Sep. 20, 1943  Sales Taxes
Dec. 05, 1941  New Taxes for Defense
Apr. 05, 1941  Taxation for National Defense
Feb. 28, 1941  Taxation of Alcoholic Beverages
Jan. 11, 1941  Exemptions from Taxation
Dec. 04, 1940  Federal Taxes and Defense Financing
Feb. 01, 1940  Sharing of Tax Revenues
Feb. 02, 1939  Turnover Taxes in the States
Nov. 05, 1937  Broadening of the Income-Tax Base
Jun. 17, 1937  Exemptions from Income Taxation
Apr. 05, 1937  Coordination of Federal and State Tax Systems
Dec. 19, 1936  Revision of Federal Tax on Capital Gains
Nov. 02, 1936  State Taxation of Natural Resources
May 26, 1936  Assessment of Property for Taxation
Apr. 17, 1936  Federal Taxes on Consumption
Mar. 19, 1936  Taxation of Undistributed Corporate Profits
Dec. 17, 1935  Reduction of Tax Burdens on Real Estate
Oct. 21, 1935  Tax Delinquency in the United States
May 21, 1935  Comparative Tax Burdens in America and Britain
Feb. 01, 1935  Federal Taxation of Corporations
Nov. 27, 1934  Elimination of Conflicts in Taxation
Jul. 25, 1933  Taxation of Excess Profits
Jan. 25, 1933  Tax Burdens and Tax-Free Securities
Nov. 23, 1932  The Beer Tax and the Sales Tax
Dec. 19, 1931  Sales Taxes: Federal, State, and Foreign
Sep. 18, 1931  Death Taxes and the Concentration of Wealth
Mar. 18, 1931  Federal Taxation of Large Incomes
Jan. 10, 1931  Taxation of Capital Gains
Nov. 09, 1929  Federal Tax Reduction-1930
Aug. 08, 1927  Federal Tax Reduction—1928
Sep. 27, 1926  Tax Reduction and the Public Debt
Jan. 16, 1926  Taxation of Estates and Inheritances
Nov. 07, 1925  Federal Taxation of Small Incomes
Nov. 28, 1924  Social, Fiscal and Legal Aspects of the Inheritance Tax
Apr. 07, 1924  Causes and Effects of the Tax Return Blockade
Dec. 12, 1923  Tax Exempt Securities
Dec. 10, 1923  Taxation
BROWSE RELATED TOPICS:
Commercial Law
Tax Reform