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

New Podcast on the Fight for Tax Reform in Kansas

September 2, 2011

Faulty Reasoning, Excellent Cartoons

September 1, 2011

Why a Permanent Repatriation Holiday, Rather Than a Temporary Fix, Is Prudent Policy

August 31, 2011

A Tale of Two Cities: Jobs Programs in DC versus Zug, Switzerland

August 30, 2011

Berkshire Hathaway and Warren Buffett Holding Out on the Federal Government?

August 29, 2011

Texas Margin Tax Experiment Failing Due to Collection Shortfalls, Perceived Unfairness for Taxing Unprofitable and Small Businesses, and Confusing Rules

August 17, 2011

Warren Buffett’s Call for Higher Taxes on the Rich Doesn’t Fit the Facts

August 15, 2011

The Facts Contradict Obama’s Calls for Higher Taxes on the Rich and Corporations

August 9, 2011

From the Archives: Federal Tax Legislation in the 1970s

August 2, 2011

From the Archives: Looking Back at Tax Foundation State Tax Research from 60 Years Ago

July 29, 2011

The Proper Role of Taxes in Deficit and Debt Reduction

July 29, 2011

Something to Agree On

July 28, 2011

Three Differences Between Tax and Book Accounting that Legislators Need to Know

July 27, 2011

From the Archives: Tax Foundation Corporate Tax Burden Studies from the 1980s

July 25, 2011

The Benefits of Tax Competition

July 25, 2011

The Problem with Targeted Tax Incentives

July 20, 2011

From the Archives: Tax Foundation Research on Taxation of Interstate Commerce, 1966 and Today

July 12, 2011

Why Hasn’t the Payroll Tax Holiday Worked?

July 11, 2011

Podcast with the Wall Street Journal’s Steve Moore on the Debt Ceiling Negotiations

July 7, 2011

Bill Clinton: Cut Corporate Tax Rate, Broaden the Base, and Enact Repatriation Holiday

July 6, 2011