Center for Federal Tax Policy

Corporate Income Taxes

In addition to the federal corporate income tax rate, many U.S. 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. According to a recent Federal Reserve study, state corporate taxes hurt entrepreneurship

State Corporate Income Tax Rates and Brackets

Corporate Tax Rates by Country


Related Articles

State of the Union Address Mostly on Target, but Misses One Important Point

January 28, 2008

New Podcast on the Incidence of Corporate Taxes

January 17, 2008

Fiscal Stimulus: Missing the Big Picture?

January 11, 2008

Tax Foundation Proposes Long-Term Solution to Economic Woes, Not Quick Fix

January 11, 2008

Lawrence Kudlow on Cutting the Corporate Tax Rate

January 8, 2008

Progressive Corporate Taxes Make No Sense, Even Progressively Speaking — Rangel’s Bill Holds Out Hope for Simplification

October 25, 2007

Personalizing the Corporate Income Tax

October 25, 2007

Congress Finally Considers Lower Corporate Tax Rate but Underestimates International Tax Competition

October 25, 2007

High Corporate Taxes in Canada and the U.S. Compared to Rest of the World

September 28, 2007

Monkeying Around with Charitable Deductions

September 14, 2007

While Congress Fiddles with Carried Interest, America Falls Further Behind

September 7, 2007

Q&A on the Carried Interest Debate

September 7, 2007

Cutting Corporate Income Taxes Could Benefit Low-Income Americans

July 27, 2007

U.S. Still Lagging Behind OECD Corporate Tax Trends

July 24, 2007

Why Is the Federal Deficit Falling and Will It Continue to Fall?

July 12, 2007

Federal Tax Code Says “Farming Good, Adult Movies Bad”

June 27, 2007

Asking the U.S. Supreme Court to Settle Tax Nexus Issue: FIA Card Services, N.A., fka MBNA America Bank, N.A., v. Tax Commissioner of the State of West Virginia

May 9, 2007

Average Dollar Tax Burdens by Type of Federal Tax, Per Household, Calendar Year 2004

April 1, 2007

Fraction of Each Quintile’s Total Tax Burden Accounted for by Each Type of Tax, Calendar Year 2004

April 1, 2007

Estimating Federal Tax Burdens for Major City Areas, Counties, and U.S. Congressional Districts

March 22, 2007