The ‘Wall Street Journal’ reported that the Congressional Budget Office expects lower collection from corporate taxes in the year ending September 2016:
Most of the drag stems from falling corporate profits. Individual income taxes are expected to rise around 1% this year and payroll tax receipts are up around 5%. Corporate income tax payments, on the other hand, are down 13%, due partly to the extension of a series of tax breaks approved by Congress last December.
Well, another part of the drag on corporate tax collection is due to lower corporate profits themselves. Something you would not realise if you were focused on the S&P 500 index.