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.


Featured Research

Understanding the House GOP’s Border Adjustment

February 15, 2017

FAQs about the Border Adjustment

January 30, 2017

What is the Distributional Impact of a Destination-Based Cash-Flow Tax?

January 18, 2017

A Beginner’s Guide to Trade and Foreign Exchange

January 9, 2017

Trends in State Tax Policy

December 5, 2016


Related Articles