Center for Federal Tax Policy

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.


Featured Research

Sources of Tax Revenue: U.S. vs. OECD

April 25, 2019

Firm Variation by Employment and Taxes

April 25, 2019

Corporate and Pass-through Business Income and Returns Since 1980

April 23, 2019

What’s up with Being GILTI?

March 14, 2019

How Do Transfers and Progressive Taxes Affect the Distribution of Income?

March 12, 2019

Corporate Tax Rates Around the World, 2018

November 27, 2018


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