Tag: excess profits

Increasing Excess Returns in U.S. Corporations: New Estimates and Policy Implications

Apr 9, 2026

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by

Mary Eschelbach Hansen

in Corporate Income Tax, Publications, Reports

Excess returns are returns from productive investments that exceed “normal returns,” which are the minimum returns required by firms to undertake the investments. The amount of excess returns matters for both equity and efficiency: high and persistent excess returns concentrate income and wealth, weaken competitive pressures, and reduce investment and innovation that drive long-run economic…