Understanding the Volatility of Corporate Profits and Minnesota Tax Receipts

:chart_with_upwards_trend:Corporate profits have shown significant volatility, especially since the pandemic recession, with periods of growth and decline.

:bar_chart:Minnesota's corporate tax receipts are correlated with U.S. corporate profits, and higher profits have led to increased tax revenues.

:money_with_wings:The forecast for U.S. corporate profits expects moderate growth in the coming years, with small declines followed by a return to growth.

:chart_with_downwards_trend:The volatility of corporate tax receipts can impact the stability of Minnesota's revenue system and its ability to fund state programs.

:balance_scale:Changes in tax laws and the interaction between different tax bases can influence the volatility and distribution of tax burdens.

What is the relationship between U.S. corporate profits and Minnesota tax receipts?

—Minnesota's corporate tax revenues are correlated with U.S. corporate profits, with higher profits leading to increased tax receipts.

How has the pandemic recession affected corporate profits?

—The pandemic recession initially led to a decline in corporate profits, but they have since rebounded and shown significant volatility.

What are the implications of corporate profit volatility for Minnesota's revenue system?

—The volatility of corporate tax receipts can impact the stability of Minnesota's revenue system, potentially affecting funding for state programs.

What factors contribute to the volatility of corporate tax receipts?

—Factors such as changes in tax laws and the interaction between different tax bases can influence the volatility and distribution of tax burdens.

What are the forecasted trends for U.S. corporate profits?

—The forecast expects moderate growth in U.S. corporate profits, with small declines followed by a return to growth.

01:00Corporate profits have shown significant volatility, with periods of growth and decline.

02:30Minnesota's corporate tax receipts are correlated with U.S. corporate profits, and higher profits have led to increased tax revenues.

03:45The forecast for U.S. corporate profits expects moderate growth in the coming years, with small declines followed by a return to growth.

06:15The volatility of corporate tax receipts can impact the stability of Minnesota's revenue system and its ability to fund state programs.

08:20Changes in tax laws and the interaction between different tax bases can influence the volatility and distribution of tax burdens.