Last Quarter, Corporate After Tax Profits Were Highest Since 1947

The Center on Budget and Policy Priorities’ Jared Bernstein notes that “corporate profits as a share of GDP, after tax, were the highest last quarter of any quarter in the history of these data going back to 1947.” Bernstein uses this stat to push back against conservatives who claim that corporate tax breaks will lead to hiring. “Why should we believe that even higher after-tax profits would make a difference?” Bernstein asked. “All these supply-side tax cuts will do is boost their already high bottom lines.” Corporate cash holdings are already up 59 percent since 2008.