March 1, 1993

The Corporate Tax Burden

Download Special Report No. 18

Special Report No. 18

Executive Summary Following the 1992 election, Americans are more concerned about the federal fiscal situation than they have been in years. This concern is justified as the fiscal 1993 budget deficit is a record high of $32- billion. At the same time, President Clinton has a raft of new spending proposals that he needs to finance. Consequently, corporate income is once again being targeted by the government as a source of increased revenues.

The federal government currently raises $100 billion a year from the corporate income tax, and state and local governments tap corporate America for an additional $25 billion. Federal corporate tax rates and bases have been on a roller coaster ride in recent years as rates have gone up and down and bases have expanded and contracted. Under current law, corporate taxable income above $75,000 is subject to an income tax rate of 34 percent.

Was this page helpful to you?


Thank You!

The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?

Contribute to the Tax Foundation