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.


Related Articles

Addressing Poor Arguments Against the Interest Deduction

August 16, 2016

The Corporate Income Tax is Most Harmful for Growth and Wages

August 15, 2016

Tax System’s Reliance on Economic Depreciation Hinders Growth

August 11, 2016

Corporate and Individual Tax Expenditures 2016

August 1, 2016

The Solution to 1.2% Second Quarter GDP Growth Results: Top Ten Business and Individual Tax Reforms

August 1, 2016

Comparing the 2016 Presidential Tax Reform Proposals

July 30, 2016

How Are Multinational Corporations’ Foreign Profits Treated Around the World?

July 21, 2016

New York Reports Raise Questions about Excelsior and Start-Up NY Job Programs

July 14, 2016

Sources of Government Revenue in the OECD, 2016

July 7, 2016

Interest Treatment in the House GOP Tax Plan

July 1, 2016

The House GOP’s Destination-Based Cash Flow Tax, Explained

June 30, 2016

The Compliance Costs of IRS Regulations

June 15, 2016

Louisiana House Votes on Flat Tax Bills Today

June 15, 2016

#TBT to Some Vintage Tax Foundation Research That is Even More Important Today

June 2, 2016

The Puzzling Policy of Foreign Tax Credits

May 31, 2016

Pennsylvania Illustrated: A Visual Guide to Taxes & The Economy

May 16, 2016

Supply-Side Fix for Falling Productivity

May 10, 2016

Costs of a 20% Corporate Tax Rate are Temporary While Benefits are Permanent

May 9, 2016

Iowa Tax Reform Options: Building a Tax System for the 21st Century

May 5, 2016

Corporate Integration: An Important Component of Tax Reform

April 21, 2016