The graph displays an estimate of overhead costs ($1.16 trillion total) for all non-financial S-corporations based on aggregate data from tax returns. Overhead costs are meant to include required expenses for firms, like interest, rents, utilities, maintenance, and so on. They do not include payments to workers, nor profits for shareholders, nor new capital expenditures.
Three points deserve note. First, overhead costs are important for private firms (approximately 14% of total revenues or 38% of gross profits). Second, we can estimate such costs relatively easily using information from past tax returns, which points toward feasible policy solutions designed to help firms cover these costs quickly during the coronavirus crisis. Third, aggregate overhead costs are especially important in retail and wholesale trade. These industries have many small private firms likely to be hardest hit by the crisis.