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.


Related Articles

The President Proposes Changing the International Tax System for Corporations

February 3, 2015

The President’s Tax on Offshore Earnings Represents the Worst of Retroactive Policy

February 2, 2015

Comprehensive Business Tax Reform a Good First Step

January 23, 2015

The President’s Middle-Class Economics

January 22, 2015

President Obama’s Capital Gains Tax Proposals: Bad for the Economy and the Budget

January 21, 2015

The Basics of President Obama’s State of the Union Tax Plan

January 21, 2015

Representative Van Hollen’s Tax and Income Redistribution Proposals

January 16, 2015

Shareholders Don’t Like High Taxes Either

January 15, 2015

Kennedy Administration Was an Early and Forceful Advocate for Dynamic Scoring

January 7, 2015

Latest Critique of Dynamic Scoring Ring Hollow Against Actual Results

January 6, 2015

America’s Shrinking Corporate Sector

January 6, 2015

Japan Plans to Cut Corporate Tax Rate, Leaving U.S. Further Behind

December 19, 2014

New Research Shows Multinational Corporations Have No Tax Advantage Over Domestics

December 17, 2014

Wall Street Journal Downplays Beneficial Effects of Bonus Depreciation

December 12, 2014

WSJ’s CEO Council Emphasizes Importance of Tax, Fiscal Policy Reform

December 11, 2014

Historians Who Criticize Dynamic Scoring

December 8, 2014

New Report on Corporate Tax Inversions Lacks Important Context

December 3, 2014

Why Not Just Get Rid of Them All?

November 26, 2014

Corporations Make Up 5 Percent of Businesses but Earn 62 Percent of Revenues

November 25, 2014

Spain’s Legislature Approves Tax Reform for 2015

November 24, 2014