Profit Collapse Continues
One detail that is of particular interest is that corporate income tax revenues fell as much as 90% in March, and 57% for the first 6 month of fiscal year 2009. Some of that decline (particularly in March) reflects that many loss-making companies get refunds for previous tax payments they made during profitable years.
This confirms that corporate profits are basically collapsing. Another confirmation of this came tonight when the first Q1 earnings report from a large company, namely Alcoa. While a big deterioration was anticipated, the loss turned out to be even greater than expected.