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

UK Announces Plans to Cut Corporate Tax Rate to 18 Percent by 2020

July 8, 2015

Olive Garden’s Taxes Are About to Change: Here’s Why

June 25, 2015

Making Sense of Profit Shifting: Kenneth Klassen

June 24, 2015

Japan’s Pending VAT Increase in Context

June 23, 2015

Making Sense of Profit Shifting: Victoria Perry

June 22, 2015

Making Sense of Profit Shifting: Thomas Neubig

June 19, 2015

The Economic Effects of Rand Paul’s Tax Reform Plan

June 18, 2015

Making Sense of Profit Shifting: Pam Olson

June 18, 2015

EU Announces “Action Plan” for Corporate Taxation

June 17, 2015

Making Sense of Profit Shifting: Nadine Riedel

June 15, 2015

E.U. Antitrust Probes Question Tax Carveouts

June 11, 2015

How Scandinavian Countries Pay for Their Government Spending

June 10, 2015

Progressive Policy Institute Calls for Cutting Corporate Tax Rates

June 9, 2015

Making Sense of Profit Shifting: Harry Grubert

June 1, 2015

Making Sense of Profit Shifting: Manal Corwin

May 29, 2015

Negative GDP Growth Illustrates the Need for Bonus Depreciation, Part 2

May 29, 2015

Making Sense of Profit Shifting: Douglas Shackelford

May 28, 2015

Making Sense of Profit Shifting: Halftime Report, Part II

May 27, 2015

Remember When the New York Times Endorsed the Flat Tax?

May 27, 2015

Making Sense of Profit Shifting: Halftime Report, Part 1

May 26, 2015