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...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!