1986 Reform Act Reversed Trend of Tax Losses

WASHINGTON - The most recent U.S. income and tax statistics are now available in the current issue of the IRS quarterly publication "Statistics of Income Bulletin".

A long-term trend of new losses reported by partnerships was reversed in 1988. Partnerships reported net income (less deficit) of almost $14.5 billion for 1988, in contrast to the net deficit of $17.4 billion reported for 1986, the year before the Tax Reform Act of 1986 began to take effect. Limited partnerships reported net deficits of $35.5 billion for 1986 and $24 billion for 1988. Real estate operators and lessors of buildings accounted for 18 percent of the $111.4 billion net income and 53 percent of the $96.9 billion net loss reported for all industries in 1988.

Profits for sole proprietorship businesses, other than farms, set a new high of over $126 billion for 1988, a record increase of 19.8 percent over 1987. Total receipts rose 10 percent to $672 billion for 1988, from $611 for 1987, with all industrial divisions showing increases. Services showed the largest growth in profits, up 22 percent.

Net income (less deficit) for foreign-controlled domestic corporations was $5.6 billion for 1987, the highest amount reported for recent years and in sharp contrast to the net negative amount of $1.5 billion reported for 1986. The 45,000 domestic corporations, controlled by foreign interests, generated $687 billion of worldwide receipts and reported total assets of $959 billion. Receipts of domestic corporations controlled by Japanese were far larger than receipts representing any other country, with a total of $185 billion for 1987, a 33 percent increase over the 1986 amount.

The summer Bulletin contains selected historical data including individual and corporate income and tax data by state and size of adjusted gross income, tax collections and refunds, and projections of returns to be filed.

The Statistics of Income Bulletin is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. The annual subscription rate is $20 for four issues; a single issue costs $7.50. Other statistical information can be obtained by writing the Director, Statistics of Income (R:S), IRS, P.O.Box 2608, Washington, DC 20013.

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