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 Federal Reserve Paper: State Corporate Taxes Hurt Entrepreneurship

January 16, 2018

New OECD Study Reviews Research on Who Bears the Burden of Business Taxes

January 12, 2018

New OECD Study Quantifies Crucial Role of Businesses in the Tax System

January 9, 2018

Trade and Capital Flow Consequences of Tax Reform: A Means to a Faster Expansion of U.S. Capital Formation and Employment

December 21, 2017

Statement on Final Passage of the Tax Cuts and Jobs Act

December 20, 2017

Does Your State’s Corporate Income Tax Code Conform with the Federal Tax Code?

December 20, 2017

Tax Cuts and Jobs Act Puts the U.S. with its International Peers

December 15, 2017

Trends in State Tax Policy, 2018

December 14, 2017

Ranking the Growth-Producing Tax Provisions in the House and Senate Bills

December 11, 2017

Replacing the 20 Percent Corporate Rate with Rates of 21 or 22 Percent Has Real Economic Consequences

December 8, 2017

Arkansas Tax Reform: Lessons from Other Legislators

December 6, 2017

Responding to a Critique of the Taxes and Growth Model

December 4, 2017

Important Differences Between the House and Senate Tax Reform Bills Heading into Conference

December 2, 2017

Key Changes in Senate Tax Reform Bill Heading into the Vote-a-Rama

December 1, 2017

Are Pass-Through Businesses Treated Fairly Under the Senate Version of the Tax Cuts and Jobs Act?

November 17, 2017

The House Takes a Big Step Forward on Tax Reform

November 16, 2017

The Economics of Permanent Corporate Rate Cuts Must Outweigh the Optics of Sunsetting Individual Tax Cuts

November 16, 2017

Eight Important Changes in the Senate Tax Cuts and Jobs Act

November 10, 2017

Small Pass-Through Businesses Would See Some Benefits Under the House Tax Cuts and Jobs Act

November 9, 2017

Time to Shoulder Aside “Crowding Out” As an Excuse Not to Do Tax Reform

November 7, 2017