Research Areas
Corporate Income Taxes
The federal corporate income tax was first instituted in 1909 when income above $5,000 was subjected to a one percent tax rate. Since then it has changed approximately 35 times, with the current top rate at 35 percent. Additionally, many states levy corporate income taxes of their own. Economists have long understood that corporate income taxes are double taxes, since the same income is taxed once as profit, and once as individual income when distributed as dividends to shareholders. Contrary to popular misconception, the ultimate burden of corporate income taxes doesn't fall on corporations, but is instead borne by workers, shareholders and consumers.
Additional questions about corporate taxes? Contact us at (202) 464-6200.
Articles from the Tax Foundation
- New House Health Care Plan Funded By Income Surtax, Medicare Cuts, October 30, 2009
- How the Pelosi and Baucus Health Care Reform Bills Are Financed, October 30, 2009
- Comparing Financing of the House and Senate Health Care Reform Plans, by Gerald Prante, October 30, 2009
- Taxes, Competitiveness and the New Hampshire Business Climate (Testimony before the New Hampshire Legislature), by Scott A. Hodge, October 21, 2009
- New Report Compares State and Local Government Tax Revenue Sources, October 9, 2009
- Where Do State and Local Governments Get Their Tax Revenue?, by Gerald Prante, October 9, 2009
- Major Components of the State Business Tax Climate Index, FY 2010 , September 22, 2009
- State Business Tax Climate Index-- Corporate Tax Index, 2010, September 22, 2009
- State Business Tax Climate Index Rankings, 2006 - 2010 , September 22, 2009
- 2010 State Business Tax Climate Index (Seventh Edition), by Kail Padgitt, September 22, 2009
- Fergus Cullen of the Yankee Institute for Public Policy: Connecticut Budget, September 16, 2009
- Corporate Taxes and Wages: Evidence from the 50 States, by Robert Carroll, August 6, 2009
- U.S. Lags while Competitors Accelerate Corporate Income Tax Reform, by Scott A. Hodge and Andre Dammert, August 5, 2009
- U.S. Business Tax Rates Fall Behind By Standing Still (Corporate Tax Rates in U.S. vs. OECD Average, 1981-2009), August 5, 2009
- The Corporate Income Tax and Workers’ Wages: New Evidence from the 50 States, by Robert Carroll, August 3, 2009
- OECD Nations Continue Cutting Corporate Tax Rates While U.S. Stands Still (Federal Plus Provincial/State Corporate Tax Rates for OECD Countries, 2008-2009), August 3, 2009
- New Surtax and Expiring Tax Cuts Could Hit Business Income Simultaneously, by Scott A. Hodge, July 17, 2009
- State Corporate Income Tax Rates, 2000-2009, July 10, 2009
- Poor State Fiscal Policy: North Carolina Passes Tax Breaks to Attract Apple, June 3, 2009
- Robert Carroll of the Tax Foundation: Tax Deferral and International Tax Competition, May 13, 2009
- What is Tax Deferral?, May 13, 2009
- What is Tax Deferral? New Tax Foundation Video Aims to Educate Public About Critical Issue Involving America’s Global Economic Competitiveness, May 13, 2009
- Ending Tax Deferral Would Unduly Penalize American Businesses, May 13, 2009
- Bank Secrecy, Tax Havens and International Tax Competition, by Robert Carroll, May 13, 2009
- Obama Corporate Tax Proposal Would Penalize U.S. Businesses Who Want to Compete in Global Marketplace, May 5, 2009
- Congressman Tom Price (R-GA): Obama Budget vs. GOP Alternative, April 8, 2009
- Kristina Rasmussen of the Illinois Policy Institute: Gov. Quinn's Tax Increase Proposal, April 1, 2009
- Richard Rahn of the Cato Institute: Tax Havens, Tax Competition and Financial Privacy, March 25, 2009
- David Harsanyi of the Denver Post: The Politics of Taxes and Fiscal Policy in Colorado, March 18, 2009
- Robert Carroll of the Tax Foundation and Diane Lim Rogers of the Concord Coalition: Moving Forward with Bipartisan Tax Policy Reform, March 11, 2009
- Congressman Paul Ryan (R-WI): Tax, Monetary and Entitlement Policy Reform, March 4, 2009
- Moving Forward with Bipartisan Tax Policy, by Robert Carroll, John E. Chapoton, Maya MacGuineas and Diane Lim Rogers, February 12, 2009
- State and Local Corporate Income Tax Collections Per Capita and Per Household, Fiscal Year 2006 , February 5, 2009
- State Corporate Income Tax Collections Per Capita and Per Household, Fiscal Year 2004-2007 , February 5, 2009
- Alex Brill of the American Enterprise Institute: Corporate Tax Rates - Receipts and Distortions, January 28, 2009
- State Business Tax Climate Index Tour ? Part III: Christopher Summers of the Maryland Public Policy Institute, November 6, 2008
- State Business Tax Climate Index Tour ? Part II: Bill Felkner of the Ocean State Policy Research Institute (Rhode Island), November 5, 2008
- State Business Tax Climate Index Tour ? Part I: Gregg Edwards of the Center for Policy Research of New Jersey, November 4, 2008
- Chris Edwards of the Cato Institute on Corporate Taxes and Global Tax Competition, October 29, 2008
- Andrew Patterson of Oklahoma Wins $5,000 First Prize in Tax Foundation's CompeteUSA YouTube Contest, October 28, 2008
- The Effect of the Presidential Candidates' Tax Plans on Flow-Through Businesses, by Robert Carroll, October 23, 2008
- North Dakota's Measure 2: How Would Rate Cuts Affect the Peace Garden State's Competitiveness?, by Joseph Henchman, October 17, 2008
- Glenn Hubbard on Corporate Tax Reform and America?s Competitiveness, October 13, 2008
- KPMG Study Finds U.S. Corporate Tax Rate Higher Than Every Global Region, by Scott A. Hodge, September 17, 2008
- Win $5,000 in the Tax Foundation's CompeteUSA Video Contest, September 10, 2008
- Comparing International Corporate Tax Rates: U.S. Corporate Tax Rate Increasingly Out of Line by Various Measures, by Robert Carroll, August 28, 2008
- Tax Foundation Urges Texas Court to Avoid Sparking an Interstate Tax War, by Joseph Henchman and Paul Galindo, August 25, 2008
- What Do Corporate Income Taxes Cost American Families?, August 18, 2008
- National-Level Statutory Corporate Tax Rates, 2008 , August 18, 2008
- Federal Corporate Income Tax Rates, Income Years 1909-2008, August 17, 2008
- Senator McCain?s and Senator Obama?s Tax Plans: Different Roads Taken, by Robert Carroll, August 15, 2008
- U.S. Corporate Taxes Now 50 Percent Higher than OECD Average, by Scott A. Hodge, August 13, 2008
- National and State Corporate Income Tax Rates, U.S. States and OECD Countries, 2008 , August 13, 2008
- AP Makes Serious Error in Story on Corporate Income Tax, August 12, 2008
- New Tax Foundation YouTube Video on Corporate Taxes, July 31, 2008
- Certainty and Uniformity: The Standards (Testimony Before Congress on H.R. 5267, the Business Activity Tax Simplification Act of 2008), by Joseph Henchman, June 24, 2008
- Arizona's Special Interest Laundry List, by Josh Barro and Joseph Henchman, June 24, 2008
- Testimony on H.R. 5267, the Business Activity Tax Simplification Act of 2008, by Joseph Henchman, June 24, 2008
- The Distributional Impact of Windfall Profits Taxes and a Gas Tax Holiday, by Gerald Prante, May 2, 2008
- Urging a Stop to South Dakota's Discriminatory Insurance Taxes -- Metropolitan Life Ins. Co. v. Kinsman, by Joseph Henchman, April 15, 2008
- Tax: Fundamentals in Advance of Reform (Testimony of Robert J. Carroll Before the Senate Committee on Finance), by Robert Carroll, April 15, 2008
- The Economic Consequences of Being Left Behind: A U.S. Business Tax System that is Out of Line Internationally, by Robert Carroll, April 4, 2008
- Jim Tisch and Ed McClellan on Corporate Capital Gains, March 31, 2008
- U.S. States Lead the World in High Corporate Taxes, by Scott A. Hodge, March 18, 2008
- Fiscal Stimulus: Missing the Big Picture?, by Robert Carroll, January 11, 2008
- Dr. Robert Carroll Joins the Tax Foundation as Vice President for Economic Policy, January 7, 2008
- Peter Merrill on the United States? High Corporate Tax Rate, December 12, 2007
- Congress Finally Considers Lower Corporate Tax Rate but Underestimates International Tax Competition, by Chris Atkins and Scott A. Hodge, October 25, 2007
- Personalizing the Corporate Income Tax, by Scott A. Hodge and Gerald Prante, October 25, 2007
- Corporate Tax Burden by Metropolitan Statistical Area (MSA), 2005 , October 24, 2007
- Corporate Income Taxes Paid by Congressional District, October 24, 2007
- Alex Brill on International Corporate Tax Rates, October 2, 2007
- Q&A on the Carried Interest Debate, by TF Staff, September 7, 2007
- U.S. Still Lagging Behind OECD Corporate Tax Trends, by Chris Atkins and Scott A. Hodge, July 24, 2007
- Asking the U.S. Supreme Court to Settle Tax Nexus Issue?FIA Card Services, N.A., fka MBNA America Bank, N.A., v. Tax Commissioner of the State of West Virginia, by Chris Atkins and Kyle O. Sollie, May 9, 2007
- Fraction of Each Quintile's Total Tax Burden Accounted for by Each Type of Tax, Calendar Year 2004 , April 1, 2007
- Average Dollar Tax Burdens by Type of Federal Tax, Per Household, Calendar Year 2004 , April 1, 2007
- The Hidden Tax for Sm(all) Business in Governor Blagojevich's Gross Receipts Tax, by Chris Atkins, March 29, 2007
- Putting Taxes on the Map: Federal Tax Burdens by City, County, Congressional District and State, by Andrew Chamberlain and Gerald Prante, March 22, 2007
- Estimating Federal Tax Burdens for Major City Areas, Counties, and U.S. Congressional Districts, by Andrew Chamberlain and Gerald Prante, March 22, 2007
- Companies' Fair Share: Zero Percent, by Andrew Chamberlain, February 22, 2007
- Tax Reform Can Boost Kansas' Tax Climate, by Jonathan Williams and Chris Atkins, February 21, 2007
- Corporate Tax Reform Will Enhance Kansas Competitiveness, by Jonathan Williams and Chris Atkins, February 21, 2007
- Phone Company Sends Text Message: Remit Payment for Service and Taxes, by William Ahern and Curtis S. Dubay, February 13, 2007
- Gross Receipts Taxes in State Government Finances: A Review of Their History and Performance, by John L. Mikesell, January 31, 2007
- Tax Reform in Michigan: Replacing the Single Business Tax, by Chris Atkins and Jonathan Williams, January 24, 2007
- Mihir Desai on Corporate Taxation, Business Decisions and Territoriality, December 5, 2006
- Tax Pyramiding: The Economic Consequences of Gross Receipts Taxes, by Andrew Chamberlain and Patrick Fleenor, December 4, 2006
- Double-Taxing Capital Income: How Bad Is the Problem?, by Patrick Fleenor, November 16, 2006
- Douglas Shackelford on the Future of the Corporate Income Tax and the Effect of Taxes on the Stock Market, November 7, 2006
- Capitol Hill Briefing: Global Trends in Tax Reform, June 5, 2006
- Options for Reforming the U.S. Corporate Income Tax, by Jonathan Williams and Patrick Fleenor, May 8, 2006
- Surge in Corporate Income Tax Collections Offers Opportunity for Tax Reform, by Jonathan Williams, May 8, 2006
- Growing Amount of Business Income Taxed by the Individual Income Tax Code, by Gerald Prante and Jonathan Williams, May 8, 2006
- U.S. Lagging Behind OECD Corporate Tax Trends, by Scott A. Hodge and Chris Atkins, May 5, 2006
- Large Oil Industry Tax Payments Undercut Case for Windfall Profits Tax, by Jonathan Williams and Scott A. Hodge, January 31, 2006
- We're Number One!, by Scott A. Hodge and Chris Atkins, January 3, 2006
- 68th National Conference and Annual Dinner, November 17, 2005
- The U.S. Corporate Income Tax System: Once a World Leader, Now A Millstone Around the Neck of American Business, by Chris Atkins and Scott A. Hodge, November 15, 2005
- A Twentieth Century Tax in the Twenty-First Century: Understanding State Corporate Tax Systems, by Chris Atkins, September 30, 2005
- Tax Reform and Revenue Neutrality: President's Panel Should Avoid the Redistribution of 1986, by Chris Atkins, July 13, 2005
- Montana Corporate Tax Disclosure Lawsuit is Built on Shaky Foundations, by Chris Atkins, March 22, 2005
- Dates of Adoption of Major State Taxes, January 1, 2005
- Manufacturing Employment, Productivity and the Business Cycle, by John A. Tatom, Ph.D., February 1, 2004
- The Corporate Tax Burden, by Stephen Slivinski, November 1, 2003
- Defending the "Indefensible", by Scott A. Hodge, June 1, 2002
- The Economic and Political Implications of Repealing the Corporate Alternative Minimum Tax, by Michael S. Knoll and Terrence Chorvat, February 1, 2002
- The Economics of Government Subsidies: The Case of Rural Electric Cooperatives and the Propane Gas Industry, by William P. Orzechowski, November 1, 2001
- A Primer on the Corporate Income Tax: Incidence, Efficiency and Equity Issues, by Michael L. Marlow, November 1, 2001
- The Corporate Tax Burden, by John S. Barry, October 1, 2001
- It's Not the Luck of the Irish -- It's Their Low Corporate Taxes, by Scott A. Hodge, May 15, 2001
- The Federal Corporate Income Tax Since WWII, by J. Scott Moody, August 1, 1998
- A Half Century of Small Business Federal Income Tax Rates and Collections, by Arthur P. Hall, Ph.D. and Gary Leff, October 1, 1996
- The Impact of Federal Taxes on the Use of Debt by Closely-Held Corporations, by John R. Robinson, Stephen T. Limberg and C. Bryan Cloyd, November 1, 1995
- The Determinants of the Choice of Income Type as a Measure of Performance in Bonus Plans, by Daryl M. Guffey and Gregory A. Carnes, October 1, 1995
- The Approaching State Corporate Income Tax Crisis, by J. Dwight Evans, September 10, 1995
- Effects of Tax Policy on Corporate Financing Decisions: Integration of the Corporate and Personal Income Tax, by Craig T. Schulman, Ph.D., Deborah W. Thomas, J.D. and Keith F. Sellers, D.B.A, October 1, 1994
- Has Taxable Income Overtaken Financial Reporting Income?, by B. Anthony Billings, October 1, 1994
- A Primer on the Corporate Alternative Minimum Tax, by Chris R. Edwards, March 1, 1994
- The Corporate Tax Burden, by Chris R. Edwards, March 1, 1993
- Corporate Tax Burden Rises, by Paul G. Merski, July 1, 1991
- The Corporate Tax Burden, by Paul G. Merski, January 1, 1990
- The Uses of a Business Transfer Tax, by TF Staff, December 20, 1985
- Taxing Foreign Source Income: A Businessman's View, by B. Kenneth Sanden, December 1, 1977
- Corporate Tax Integration: A Quantitative Comparison of Alternatives, by Martin S. Feldstein and Daniel J. Frisch, December 1, 1977
- Taxing Foreign Source Income: The Economic and Equity Issues, by Norman B. Ture, May 1, 1976
- The Corporation Income Tax: An Examination of Its Role in the Federal Tax System, by TF Staff, December 1, 1968
- Current Problems and Issues in State Taxation of interstate Commerce, January 30, 1966
- Reexamining the Federal Corporation Income Tax, by TF Staff, January 1, 1958
- Factors Affecting Industrial Location: A Bibliography, by TF Staff, December 1, 1956
- Links to Other Tax Policy Resources, December 31, 1969