Subject to base period profit margin, DIFFERENCE FROM MANUFACTURER General manufacturers not Subject to control through percentage Either one of the last 2 fiscal years Profit Margin Behavior of items in consumer price index during Phases II and III, classified by type of control applicable Seasonally adjusted where possible. Major exceptions are property taxes, services, and residential rents. 2 Major items are houses, used cars, and State and local taxes and user charges. 3 Though the Phase II requirement for certification was dropped in Phase III, the basic regulations continued in force. Sources: Department of Labor (Bureau of Labor Statistics) and Council of Economic Advisers. A-41 40 PROFITS INDUSTRY COMPARISON OF PROFITS BEFORE TAX AS PERCENT OF EQUITY 38 1973 BEFORE 36 TAX 36 1965 34 32 30 30 1973 28 1966 1966 28 1966 1973 1965 26 1966 1973 26 1965 1966 1966 1973 1973 1968 1962 1968 24 24 1973 1973 1966 1973 1973 1973 1973 1968 22 22 1973 1970 1966 1965 1973 1973 20 1973 20 1973 1963 1973 18 18 1971 1970 1971 1962 1973 1963 16 1970 16 1970 1973 1962 14 1970 1973 12 10 10 1971 1962 NOTE: Year on top is highest profit rate in 1962-1973 span. Year on bottom is lowest profit rate in 1962-1973 span. 1973 (3 quarters only) is shown separately if it is not either the high or low rate. A-42 |