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

Ten Benefits of Cutting the U.S. Corporate Tax Rate

May 11, 2011

Indiana Approves Tax Changes, Including Corporate Tax Rate Reduction

May 2, 2011

Putting Oil and Gas Tax Treatment in Perspective

April 28, 2011

Bearing the Burden of Oil Industry Taxes

April 28, 2011

U.S. Multinationals Paid $100 Billion in Foreign Income Taxes According to Most Recent IRS Data

April 26, 2011

Executives Polled on Corporate Tax Reform

April 21, 2011

Film Tax Credits Getting Attention in Some States

April 15, 2011

Prepared Statement of Joseph Henchman: Hearing on the Business Activity Tax Simplification Act of 2011

April 13, 2011

Tax Reform and the Long-Term Budget

April 8, 2011

Wyden-Coats Tax Reform Plan Adds to Debate But Needs Fixing

April 8, 2011

Ryan Plan Smartly Marries Tax Reform with Spending Reform

April 5, 2011

Census Bureau Releases 2010 State Tax Collection Data

April 5, 2011

No Joke. U.K. Cuts Corporate Tax Rate, U.S. Falls Further Beyond

April 1, 2011

Miracles Can Happen: Corporate Tax Reform Edition

March 30, 2011

U.K. Strives to have “Most Competitive Tax System Among G20”

March 28, 2011

Tax Complexity is the Real Culprit in G.E. Tax Story

March 25, 2011

Time for a Permanent Holiday on Foreign Earnings

March 24, 2011

Tax Havens: Avoidance or Evasion?

March 17, 2011

Tax Foundation Testifies before Congress on Need for Fundamental Tax Reform

March 10, 2011

Testimony of Scott Hodge before the U.S. Senate Budget Committee, Hearing on Distribution and Efficiency of Spending in the Tax Code

March 9, 2011