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

Podcast with the Wall Street Journal’s Stephen Moore

September 12, 2006

Japan, Germany Flirting with Corporate Tax Rate Reductions

September 5, 2006

Can Taxes on Capital Survive Globalization?

August 30, 2006

Who Bears the Burden of the Corporate Income Tax?

August 25, 2006

Transcript of Podcast Interview with Glenn Hubbard Available

July 19, 2006

Corporate Tax Receipts Projected to Set Record

July 10, 2006

Wal-Mart Tax Fails to Gain Momentum

July 6, 2006

CEO Makes Case Against Tax Incentives for Companies

July 5, 2006

Improving the U.S. Corporate Income Tax: Lessons from Abroad

June 22, 2006

Feldstein: Taxes on Investment Income Are High and Distortionary

June 21, 2006

Capitol Hill Briefing: Global Trends in Tax Reform

June 5, 2006

New York Times Calls for Abolition of Corporate Income Tax

May 24, 2006

Do Temporary Tax Cuts Work?

May 12, 2006

Do Companies Want Special Tax Favors, or Good Tax Policy?

May 10, 2006

Time to Reform the Corporate Tax System?

May 9, 2006

Surge in Corporate Income Tax Collections Offers Opportunity for Tax Reform

May 8, 2006

Options for Reforming the U.S. Corporate Income Tax

May 8, 2006

Growing Amount of Business Income Taxed by the Individual Income Tax Code

May 8, 2006

Corporate Income Tax Rates Around the World

May 5, 2006

Rising Corporate Tax Collections Narrow Deficit

May 5, 2006