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Show of approximately $5 billion S year. "Inflated Profits" ... As to what industry is doing with the "inflated profits it is now taking from the inflation spiral," the first thing the stockholders do with their $6.2 billion of dividends is to pay income taxes of about $2 billion on the dividends. Washington Snapshots Profits of corporate business, although higher than pre-war levels, are proving inadequate to meet the requirements of current business expansion. An analysis based on Department Depart-ment of Commerce figures shows that of the $28 billion of corporate profits, Federal and state corporate corpor-ate income taxes take $11.2 billion. About $6.2 billion are paid out in dividends, leaving $10.6 billion of retained earnings. Inadequate Amount . . . The $10.6 billion of retained earnings seem very large until it is discovered that this amount is utterly inadequate to finance the curent expansion. Department of Commerce data indicate that business busi-ness expenditures for producers' equipment, and industrial and business busi-ness construction have been running run-ning at an annual rate of between $20 and $25 billion. Including funds from current depreciation de-preciation charges, only about two-thirds two-thirds of these gigantic outlays can be met out of reinvested earnings. Despite the sharp increases in profits pro-fits over pre-war figures, corporate corpor-ate business has had to go out and borrow money and sell new capital issues amounting to billions of dollars. Even in the face of all such resources, corporate cash on hand has been falling at the rate |