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

New Podcast Interview with Economist Douglas Shackelford

November 7, 2006

New KPMG Survey of Falling Corporate Tax Rates Around the World

November 6, 2006

Podcast with the Wall Street Journal’s Stephen Moore

September 12, 2006

Can Taxes on Capital Survive Globalization?

August 30, 2006

Who Bears the Burden of the Corporate Income Tax?

August 25, 2006

Transcript of Podcast Interview with Glenn Hubbard Available

July 19, 2006

Corporate Tax Receipts Projected to Set Record

July 10, 2006

CEO Makes Case Against Tax Incentives for Companies

July 5, 2006

Capitol Hill Briefing: Global Trends in Tax Reform

June 5, 2006

Surge in Corporate Income Tax Collections Offers Opportunity for Tax Reform

May 8, 2006

Options for Reforming the U.S. Corporate Income Tax

May 8, 2006

Growing Amount of Business Income Taxed by the Individual Income Tax Code

May 8, 2006

Corporate Income Tax Rates Around the World

May 5, 2006

U.S. Lagging Behind OECD Corporate Tax Trends

May 5, 2006

A Toast to Irish Corporate Tax Policy

March 17, 2006

Large Oil Industry Tax Payments Undercut Case for Windfall Profits Tax

January 31, 2006

America’s Uncompetitive Corporate Tax System

January 3, 2006

We’re Number One!

January 3, 2006

Shell Scraps Oil Investments Following British Tax Hike

December 19, 2005

Global Tax Competition in Action

November 28, 2005