random walk

John K. Taber jktaber at onramp.net
Tue Oct 20 05:09:56 PDT 1998


pms wrote:


> >For most companies that I have seen, the rate is 35-45%. There are
> >exceptions, and one that I've seen are the pharmaceuticals with income
> >tax rates of 10-15%.
> >john taber
>
> 45%. Can this be true?

Yes. It's not a constant, year to year rate, but now and then, that is the rate for a particular company in a particular year.

Doug just circulated a table of profits as a percentage of GDP (which is a good way to look at it) and tax rate as a percentage of profits. The latest average was 35%.

So, I would use 35% for general purposes.

-- I've been able to string more words into fewer ideas than anybody I know, and I'm continuing to do that.

- Alan Greenspan to the Senate Budget Committee, Sept 23, 1998



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