1st:
maybe profits are the stories what companies make up for tax offices and thus they shrink constantly just to pay less, nowadays often due to “licenses” beeing payed to same-company-substructures that are then taxed in tax-havens at a fixed shamingly low rate per year no matter how much it actually was.
2nd:
maybe managers pay themselves huge boni for enabling the company to save huge amounts of taxes (see 1st above), thus average (not median) income rises (not asked in the question though)
3rd:
maybe banks print more money for richies to let you work for basically free for them, thus things get overall more pricy thus gdp rises.
4th:
maybe its economists “job” to come up with complex artificial stories and mathmatical calculations to make governments and “you” believe that you actually “profit” from beeing ripped off. (not asked for this answer too, but is included in the answer however)
1 I think this can be verified for all public companies.
2 Corporations are taxed at a lower rate than individuals. Individual managers and CEOs are often paid in stock options which is buying stock from the corporation at a below market rate and selling the stock on the market for a normal price. For this they pay a 15% flat tax.
4 I don’t have an issue with the math, its often with the definitions and how they are collecting information that gives those paying for the studies a means to justify what they are already doing.
just to note and think about:
1st: maybe profits are the stories what companies make up for tax offices and thus they shrink constantly just to pay less, nowadays often due to “licenses” beeing payed to same-company-substructures that are then taxed in tax-havens at a fixed shamingly low rate per year no matter how much it actually was.
2nd: maybe managers pay themselves huge boni for enabling the company to save huge amounts of taxes (see 1st above), thus average (not median) income rises (not asked in the question though)
3rd: maybe banks print more money for richies to let you work for basically free for them, thus things get overall more pricy thus gdp rises.
4th: maybe its economists “job” to come up with complex artificial stories and mathmatical calculations to make governments and “you” believe that you actually “profit” from beeing ripped off. (not asked for this answer too, but is included in the answer however)
maybe, just maybe ;-)
1 I think this can be verified for all public companies.
2 Corporations are taxed at a lower rate than individuals. Individual managers and CEOs are often paid in stock options which is buying stock from the corporation at a below market rate and selling the stock on the market for a normal price. For this they pay a 15% flat tax.
3 Sorry but its worse than that. Many major corporations are price fixing. https://goodjobsfirst.org/illegal-corporate-price-fixing-conspiracies-are-widespread-in-u-s-economy/ That certainly helps GDP go up.
4 I don’t have an issue with the math, its often with the definitions and how they are collecting information that gives those paying for the studies a means to justify what they are already doing.