Table 15.—Corporation profits before tax per National Income and Product Accounts and per Statistics of Income , and income subject to tax per SOI, income years 1960-2002

Statistics of Income Bulletin, Fall, 2004

Table 15.--Corporation Profits Before Tax per National Income and
Product Accounts (NIPA) and per Statistics of Income (SOI), and
Income Subject to Tax per SOI, Income Years 1960-2002

[All figures are estimates--money amounts are in billions of dollars]

            Profits                            Income
          before tax       Net income         subject
Income    (per NIPA)     (less deficit)     to tax (per
 year       (1, 2)        (per SOI) (3)     SOI) (3, 4)

              (1)              (2)              (3)

1960          51.6           43.5             47.2
1961          51.6           45.9             47.9
1962          57.0           49.6             51.7
1963          62.1           54.3             54.3
1964          69.1           61.6             60.4
1965          80.2           73.9             70.8
1966          86.7           80.5             77.1
1967          83.5           78.2             74.8
1968          92.4           86.0             81.4
1969          91.4           80.2             81.2
1970          81.0           65.9             72.4
1971          92.9           79.7             83.2
1972         107.8           96.8             95.1
1973         134.8          120.4            115.5
1974         147.8          148.2            144.0
1975         145.5          142.6            146.6
1976         179.7          185.4            183.5
1977         210.4          219.2            212.5
1978         246.1          246.9            239.6
1979         271.9          284.6            279.4
1980         253.5          239.0            246.6
1981         243.7          213.6            241.5
1982         198.5          154.3            205.2
1983         233.9          188.3            218.7
1984         268.6          232.9            257.1
1985         257.4          240.1            266.1
1986         246.0          269.5            276.2
1987         317.6          328.2            311.8
1988         386.1          413.0            383.2
1989         383.7          389.0            371.1
1990         409.5          370.6            366.4
1991         423.0          344.9            350.0
1992         461.1          402.0            377.9
1993         517.1          498.2            436.8
1994         577.1          577.3            494.0
1995         674.3          714.2            564.7
1996         733.0          806.5            639.8
1997         798.2          915.4            683.8
1998         718.3          838.2            663.4
1999         775.9          929.0            693.7
2000         773.4          927.5            760.4
2001         707.9          603.6            635.3
2002         758.0          566.0 (p)        602.8 (p)

Table 15

[1] In general, includes profits of U.S. corporations filing income tax returns as recorded in Statistics of Income, but with exceptions and adjustments (see below). Also includes profits of nonprofit institutions that primarily serve business and income of Federal Reserve Banks and Federally-sponsored credit agencies. However, profits of S corporations, only partially included in Statistics of Income data for recent years, are excluded from profits in the National Income and Product Accounts (NIPA) and are treated, instead, as "personal income" (see Table 4). For other corporations excluded in NIPA profits, see footnote 2, below, and footnote 1, Table 13.

Compared to Statistics of Income net income, profits for NIPA purposes are defined to include tax-exempt interest on State and local government obligations, but to exclude capital gains and losses, intercorporate dividends received, depletion, and bad debt losses. Consistent with Statistics of Income, NIPA profits reflect the inventory and depreciation accounting practices used for tax purposes. NIPA profits include income earned abroad by U.S. corporations, but exclude profits earned in the United States by foreign corporations.

[2] Reflects changes made to data as part of the 2003 Comprehensive Revision of the National Income and Product Accounts (NIPAs). For details of this revision, see the Bureau of Economic Analysis web site at http://www.bea.gov/bea/dn/ 2003benchmark/CR2003content.htm.

[3] For Statistics of Income, "net income (less deficit)" and "income subject to tax" exclude taxable cooperatives, starting with the 1985 data; Real Estate Mortgage Investment Conduits (REMIC's), starting with 1987; and Personal Service Corporations for 1988-1993. Net income (less deficit), starting with 1985, excludes Foreign Sales Corporations (FSC's) and Interest-Charge Domestic International Sales Corporations (ICDISC's). See also Table 13, footnote 1. For changes in the definition of Regulated Investment Company and S corporation net income, see Table 13, footnote 18. For the coverage of corporations and the definition of corporate profits used for the National Income and Product Accounts, see footnote 1, above.

[4] For the definition of "income subject to tax," see Table 13, footnote 19. See also footnote 3, above.