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

Stock Buybacks Don’t Hinder Investment Spending

June 19, 2018

The OECD Highlights the Economic Growth Benefits of Full Expensing

June 12, 2018

Fee Proposal Would Discourage Companies from Hiring Lower-Income Workers

May 17, 2018

Contrary to “Fair Share” Claims, Businesses are Central to Tax Collection Systems

May 16, 2018

Not So Much Ado About Stock Buybacks—Q1 2018 Repurchases Comparable to Past Years

May 14, 2018

Missing Some Context on Stock Buybacks

May 8, 2018

Assessing the Bureau of Economic Analysis 2018 Q1 GDP Estimate

April 30, 2018

Business Investment Increases by 39 Percent in Q1 2018

April 27, 2018

Latvia Joins the Cash-Flow Tax Club

April 16, 2018

Lawmakers May Vote on Making Key Provisions of the TCJA Permanent

April 5, 2018

China Announces Retaliatory Tariffs on U.S. Goods

April 5, 2018

Sources of Government Revenue in the OECD, 2018

March 22, 2018

Proposed Chinese Tariffs Will Raise Taxes Following a Large Tax Cut

March 20, 2018

Inversions under the New Tax Law

March 13, 2018

Lessons from the 2002 Bush Steel Tariffs

March 12, 2018

Will Lawmakers Finally Decide the Fate of Tax Extenders?

March 12, 2018

New Study Shows United States Taxes Capital Income at Above-Average Rates

February 28, 2018

Banks Urge Congress to Review Credit Union Exemption

February 21, 2018

The United States’ Corporate Income Tax Rate is Now More in Line with Those Levied by Other Major Nations

February 12, 2018

European Countries Push Forward on Digital Taxes Despite Pleas to Wait

February 9, 2018