Isn't most of this the interest earnings on the government securities in
its portfolio? So except for earnings on discount loans, we're talking
about one hand of the government paying the other hand and then getting
it back at the end of the year?
On Sun, 11 Dec 1994, Helene Jorgensen wrote:
> On Sat, 10 Dec 1994 22:08:15 -0800 Michael Perelman said:
> >Does anybody know off hand how much the Fed pays in taxes and what share
> >it is of the total corporrate tax contributions? How has the share increased
> >over time?
> >
> >I remember that it was a relatively high percentage.
> >--
> According to the Economic Report of the President, the Federal Reserve
> banks' corporate profits were $16.1 billion, which means that given
> Doug's data on taxes that the Fed pays 100 percent in corporate taxes.
> Profits of the Fed have been declining since 1990. However, the Fed
> earned 4.2 percent of total corporate profit of domestic industries, down
> from 7.5 percent in 1990. I am really surprised, how does the Fed make
> this huge amount of money? Just from lending money to commercial bank?
>
> Helene Jorgensen
> Department of Economics
> The American University
> Washington, DC.
>
> Email: [EMAIL PROTECTED]
>
