Euro crisis hits Global Profits says Bloomberg, but June US tax collections hit 4 year record

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Bloomberg says that global corporate profits are being hit by the Euro crisis. Maybe so, but second quarter corporate taxes in the US hit a 4 year record.

Europe’s debt crisis is putting pressure on corporate earnings globally with companies from Procter & Gamble Co. (PG) to Danone (BN) cutting forecasts and signaling profits will fall at more companies this year.

Analysts predict members of the Standard & Poor’s 500 Index in the U.S. will report a 1.1 percent average drop in second- quarter earnings, after estimating a gain as recently as last month, according to data compiled by Bloomberg. That would be the first decline in 11 quarters after a 6.2 percent average increase in the first quarter. A stronger dollar is another threat to earnings as U.S. exports become more expensive.

via Euro Crisis Hits Profits Globally as P&G Cuts Forecast – Bloomberg.

If corporate profits are falling, it has not happened yet, at least as far as US based multinationals are concerned. June corporate tax collections for Q2 2012 are the highest they have been in 4 years, beating 2011 by a healthy 9.2%, and that doesn’t count late filers for the remainder of the month after the June 15 deadline. By month’s end, the gap should be 10% or more. So while the media touts the falling sky, the facts say something different.

Maybe the sky will fall, just not yet.

Corporate Income Tax Collections Chart- Click to enlarge

Corporate Income Tax Collections Chart- Click to enlarge

 

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  2 comments for “Euro crisis hits Global Profits says Bloomberg, but June US tax collections hit 4 year record

  1. Ivan Serg
    June 27, 2012 at 12:28 am

    there’s mass media spin, and there’s wxe-mr Adler spin..

    from title ‘June US tax collections hit 4 year record’
    you would think ITS SOME KIND OF MULTI YEAR RECORD

    so mr Adler think he is smart, and rest of are stupid and cant analyze daily/monthly treasury statements..

    here’s real truth about so called 4 YEAR HIGH ..

    currently corp taxes are running +210 bln per year, its 1999-2000 level.. 10+ year ago and +10% population less.

    on peak of housing bubble 2006-2007 corp taxes were running 370-380 bln per year, so we are almost +40% down from peak.

    so pick your choice its 4 year high, or 40% off the top

    good luck
    alx west

    • June 27, 2012 at 7:06 pm

      Whattsa matta? You can’t handle the truth? Everybody knows things are down from the highs and I have pointed that fact out repeatedly ad nauseum here for a very long time. But the trend is what matters to markets and my work is about markets. I also do plenty of criticism of the Fed and the government. My only allegiance is to finding the truth and reporting it. Try becoming familiar the totality of my work before making an idiotic, pointless comment next time. Until then, you’re a know nothing.

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