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

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

Making Sense of Profit Shifting: Pascal Saint-Amans

May 22, 2015

Making Sense of Profit Shifting: Scott Dyreng

May 21, 2015

Making Sense of Profit Shifting: Kevin Markle

May 20, 2015

Making Sense of Profit Shifting: Jack Mintz

May 19, 2015

Making Sense of Profit Shifting: Lars Feld

May 18, 2015

Making Sense of Profit Shifting: Edward Kleinbard

May 15, 2015

Making Sense of Profit Shifting: Dhammika Dharmapala

May 14, 2015

Making Sense of Profit Shifting: Mihir Desai

May 12, 2015

Making Sense of Profit Shifting: Kimberly Clausing

May 12, 2015

Tax Foundation Forum: Making Sense of Profit Shifting

May 12, 2015

Kentucky Senators Introduce Tax Fix for Bourbon Producers

May 11, 2015

Secretary Lew Pushes Flawed Plan to Fund Highway Trust Fund

April 29, 2015

Happy Tax Freedom Day!

April 24, 2015