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 21 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

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

Comparing the Candidates’ Tax Plans

October 17, 2012

Second Debate Marred by Protectionist Rhetoric

October 17, 2012

Monday Map: State Tax Incentives for Business

October 15, 2012

Spurred by Tax Foundation Index Ranking, Maine Gov. Calls for Corporate Tax Cut

October 15, 2012

Congressman Nunes Proposes a Bold New Approach to Taxing Business

October 12, 2012

2013 State Business Tax Climate Index: Corporate Tax Component

October 9, 2012