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

A Repatriation Tax Holiday Sounds Fun, but Comes with a Hangover

August 14, 2017

What Would “Unprecedented Capital Expensing” Look Like?

July 28, 2017

Comments on Today’s Joint Statement on Tax Reform

July 27, 2017

If Retained, R&D Tax Credit Should Be Reformed

July 20, 2017

Should the Corporate Rate and the Pass-Through Rate Be Identical?

July 13, 2017

Remarks by Scott Hodge to the Tax Fairness Conference

July 6, 2017

How a Longer Budget Window Helps and Doesn’t

June 27, 2017

A Border Adjustment Phase-in?

June 13, 2017

Full Expensing Costs Less Than You’d Think

June 13, 2017

Why Temporary Corporate Income Tax Cuts Won’t Generate Much Growth

June 12, 2017

To Lower the Corporate Tax Rate, Lawmakers Will Have to Think Outside the Box

June 8, 2017

What We Can Learn from the UK’s Corporate Tax Cuts

June 7, 2017

A Quick Overview of the Asymmetric Taxation of Business Gains and Losses

May 31, 2017

The Cautionary Tale of Chilean Tax Reform

May 24, 2017

How the Border Adjustment Helps Fix Business Taxation in the United States

May 23, 2017

Economic Growth and Cutting the Corporate Tax Rate

May 10, 2017

Interest Deductibility – Issues and Reforms

May 4, 2017

Why Full Expensing Encourages More Investment than A Corporate Rate Cut

May 3, 2017

Details of the Trump Administration Tax Proposal Released Today

April 26, 2017

Could Trump’s Corporate Rate Cut to 15 Percent be Self-Financing?

April 25, 2017