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

New Jersey May Adopt Highest Corporate Tax in the Country

June 19, 2018

Seattle City Council Votes Overwhelmingly to Repeal New Business Head Tax

June 12, 2018

New Jersey Still Considering Hefty Corporate Tax Increase, a Move in the Wrong Direction

June 12, 2018

The OECD Highlights the Economic Growth Benefits of Full Expensing

June 12, 2018

Indiana Passes Conformity Bill in One-Day Special Session

May 22, 2018

Seattle’s New Business Head Tax Law is Deeply Unpopular

May 18, 2018

Governor Dayton Vetoes Minnesota’s Conformity Bill

May 17, 2018

Fee Proposal Would Discourage Companies from Hiring Lower-Income Workers

May 17, 2018

Is Every Tax Cut Kansas?

May 16, 2018

Contrary to “Fair Share” Claims, Businesses are Central to Tax Collection Systems

May 16, 2018

Not So Much Ado About Stock Buybacks—Q1 2018 Repurchases Comparable to Past Years

May 14, 2018

States Can’t Just Hit Pause on Implications of Federal Tax Reform

May 10, 2018

What’s in the Iowa Tax Reform Package

May 9, 2018

Missing Some Context on Stock Buybacks

May 8, 2018

Minnesota’s Tax Plans Make Modest Improvements

May 2, 2018

Assessing the Bureau of Economic Analysis 2018 Q1 GDP Estimate

April 30, 2018

Business Investment Increases by 39 Percent in Q1 2018

April 27, 2018

Missouri Corporate Tax Reform Bill Receives Bipartisan Support, But Prospects Uncertain

April 26, 2018

Reforming Arkansas’s Income Taxes

April 26, 2018

Seattle Business Head Tax Proposal Threatens its Thriving Tech Sector

April 26, 2018