The Effects of Cooperation on the Profit Economy

1 Theoretical calculations based on the distribution of corporate earnings in 1946 indicate a federal income tax liability for a net profit before taxes of Szoo,ooo to be approximately the following for each type of business organization:Individual proprietorshp $63,954 Partnership (two individuals) $50,958 Corporation $43,890 It is assumed that the recipients of corporate dividends paid $5,89o of the total tax of $43,890 credited to the corporation.