Corporate pretax profits, or net income (less deficit), reported on income tax returns for 2002 continued to decline from 2001 levels, decreasing 6.6 percent from $603.6 billion for 2001 to $563.7 billion for 2002.
For Tax Year 2002, the 61,615 domestic corporations each controlled by a foreign “person” generated $2.5 trillion of total receipts and reported $6.4 trillion of total assets on income tax returns filed with the Internal Revenue Service.
The Statistics of Income (SOI) study of 2002 foreign trust returns reflects both the substantial and increasing interest in foreign investment by U.S. taxpayers and the new information reporting requirements for foreign trust activity that were instituted by the Small Business Job Protection Act of 1996.
For Tax Year 2003, there were approximately19.7 million individual income tax returns that reported nonfarm sole proprietorship activity. Profits for nonfarm sole proprietorships totaled $230.3 billion, a 4.2-percent increase from Tax Year 2002.
State and local governmental units issued nearly $2.1 trillion of tax-exempt bonds between 1996 and 2002. The majority ($1.5 trillion) of these tax-exempt bonds were Governmental bonds, the proceeds of which helped finance public projects (such as schools, streets, and utilities).
Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the Federal estate tax is set for temporary repeal in 2010. However, without further Congressional action to permanently repeal the tax, it will reappear and apply to transfers in 2011 and beyond.