How bad is the problem? The New York Times reported that 68 of the largest firms paid no income tax in any state for at least one of the past three years. At the federal level, it was recently reported that the effective CIT rate (that is, what the companies actually pay) has fallen to a 40-year low of 12.1 percent, even as profits reached a 60-year high. While similar state data are unavailable, it's unlikely that the states are doing better than the feds. The result is, while corporate income taxes on the national level contributed 9.7 percent of state revenues in 1980, that dropped to an estimated 5.7 percent by 2010. Over this same period, various surveys show that corporate, after-tax profits have increased something like seven-fold.