Corporate Income Taxes

The U.S. 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 U.S. 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

Taxes Up, Stocks Up, What Can Go Wrong?

January 8, 2013

Modeling the Economic and Distributional Effects of the Senate Tax Bill

January 1, 2013

Kentucky Tax Reform Commission Offers Disappointing Grab Bag

December 27, 2012

Michigan Approves Phaseout of Destructive Personal Property Taxes

December 21, 2012

Oregon Promises Not to Change Tax Code in Nike Agreement

December 21, 2012

CRS, at odds with Academic Studies, Continues to Claim No Harm in Raising Top Earners Tax Rates

December 14, 2012

Raising Revenue: The Least Worst Options

December 5, 2012

Ohio Considers Changes to Complex Municipal Tax Codes

December 3, 2012

The Territorial Taxation Experience in the Netherlands

November 16, 2012

Germany Promotes Competition with Shift to Territorial Taxation System

November 15, 2012

Maryland Democratic Legislators Open to Reducing Corporate Tax Rate

November 14, 2012

The United Kingdom’s Move to Territorial Taxation

November 14, 2012

Japan Disproves Fears of Territorial Taxation

November 13, 2012

What Canada Can Teach Us about Corporate Taxes

November 12, 2012

Canada’s Experience with Territorial Taxation

November 12, 2012

The Fiscal Cliff and the Stock Market

November 9, 2012

CRS Pulls Disputed Report on Taxes and Economic Growth

November 2, 2012

Simulating the Economic Effects of Obama’s Tax Plan

November 1, 2012

Retracted CRS Report on Taxes and Growth Flawed, But Still Cited

October 23, 2012

A Quick Guide to the Obama and Romney Tax Plans

October 18, 2012