Tax Revenues Evaporate Across The Board

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Newest charts released from the Federal Reserve:



Federal Tax Receipts On Corporate Income

Notice the timeline in the chart above reaching back to 1930. The current corporate tax receipt base has collapsed 90% from the boom peak and has receded to a level completely without precedent since before the Great Depression.



State and local taxes on corporate income display a similar sharp decline, registering approximately 30% reduction from boom peak. In both cases the rate of decline remains on a very steep track.

[lady_apol]

The effect of a change in taxation level on total tax revenue depends on the good being investigated, and in particular on its price elasticity of demand. Where goods have a low elasticity of demand, an increase in tax or duty will lead to a small decrease in demand - not enough to offset the higher tax raised from each unit. Overall tax revenue will therefore rise. Conversely, for goods which are price elastic, an increase in tax rate or duty would lead to a fall in tax revenue.




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