EARNINGS: Where the Money Goes

The world's largest manufacturing corporation last week showed the effects of paying the world's largest tax bill. General Motors Corp. reported that its third-quarter earnings slumped to $92 million, 57% below the same period in 1950 and 34% below the second quarter, although sales ($1.7 billion) were only 10% below the second quarter.

In the first nine months, said General Motors, 76¢ of every sales dollar went to pay its employees and suppliers (see chart); more than 15¢ (and 3¢ for every cent of net profit) went for taxes. During the third quarter, the tax bite under the new tax...

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