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In 1970 for every £100 of profit earned, £10 was paid out as dividends.
While every other developed nation taxes companies only on the profits they make locally, the United States also taxes U.S.-based multinationals on every dollar of profit earned internationally.
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First, the strong dollar is reducing the value of profits earned in other currencies.
The figures show that more than a third of profits earned by American companies are now made overseas.
Some consumer advocates complain that the agency's headline-grabbing settlements hardly made a dent in the billions of dollars of profits earned on Wall Street.
On Thursday, the government raised its estimate of those profits in the first quarter, even as it reduced its estimate of profits earned in this country.
A stronger yen hurts exporters like Sony by raising the price of their goods overseas and reducing the yen value of profits earned abroad.
A stronger Japanese currency reduces the value of profits earned in dollars and makes Japanese cars more expensive to shoppers overseas.
DealBook » Corporate Taxes Reach 40-Year Low | Total corporate taxes paid in fiscal 2011 amounted to 12.1 percent of profits earned in the United States, according to the Congressional Budget Office, the lowest level since at least 1972, The Wall Street Journal reports.
Daimler and Renault said that in addition to the slowdown in important markets, their results were hurt by the strength of the euro, which reduced the exchange value of profits earned overseas.
A strong dollar cuts into earnings by dulling a company's competitive edge overseas and through the reduction of profits earned abroad when they are translated back into dollars.
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CEO of Professional Science Editing for Scientists @ prosciediting.com