Corporate Tax Receipts Projected to Set Record
July 10, 2006
As the US economy marches forward, tax receipts from corporations are beating all expectations. From the Los Angeles Times:
“Corporate tax receipts this year will probably cross the $300-billion threshold for the first time, boosting efforts to trim the U.S. budget deficit, the Congressional Budget Office said.
The budget agency, in its monthly review released Friday, estimated that corporate receipts would exceed $330 billion in fiscal 2006, up 18% from 2005. That is double the increase that the agency estimated at the beginning of the government’s fiscal year, which ends Sept. 30.” [Full Story]
This spring, Tax Foundation economists released several studies that analyzed how this increase in corporate tax receipts may influence the upcoming policy debate on US competitiveness. We pointed out that the surge in corporate income tax collections offers lawmakers a real opportunity to reform the system. Furthermore, we provided a basic framework for policymakers that are considering fundamental tax reform.
To view our collected research on corporate tax policy, click here.