Capitol Hill Briefing: What Do Corporations Pay in Income Tax?
Much attention has been focused lately on American corporations “not paying their fair share” in taxes. Some members of the media as well as elected officials have gone through great effort to point out that although the U.S. corporate statutory rate, at 35%, is the second highest in the world; U.S. companies pay a much lower rate. The latest Tax Foundation research and IRS data however says otherwise.
Join us for a lunch briefing on October 17th as Scott Hodge and Will McBride present our latest findings using IRS data and shed some light on the myths that exist regarding U.S. corporations.
- As is often the case in tax discussions, anecdotes do not tell the whole story.
- The largest corporations pay the lion’s share of taxes. In 2008, the 1,937 largest companies were responsible for 68 percent of corporate tax revenue
- The overall effective corporate income tax rate on the worldwide income of U.S. corporations is between 32.1 and 33 percent, which is close to the statutory rate of 35 percent.
Date & Time – October 17th, 12 – 1pm
Place – Committee on House Administration Hearing Room – Longworth 1310
Since lunch is being served we ask that you RSVP
Scott A. Hodge is president of the Tax Foundation in Washington, D.C., and is recognized as one of Washington’s innovative thinkers on tax policy, the federal budget and government spending. Over the past 20 years Scott has been a leader in many successful efforts to change public policy. During the 1990s, he led the campaign to include the $500 per-child credit and capital gains tax cuts in the Contract with America. These tax cuts were the eventual centerpieces of the 1997 tax bill and the Bush tax cuts in 2001 and 2003.
William McBride is an economist at the Tax Foundation. He holds a Ph.D. in economics from George Mason University, where his dissertation involved using agent-based modeling and simulation to analyze the effect of various banking regimes, including free banking, on asset prices. While at George Mason, William was a research assistant at the Interdisciplinary Center for Economic Science, which was established by Nobel laureate Vernon Smith as a center for research in experimental economics.