New Study: State Corporate Income Taxes Hurt Workers’ Wages

August 3, 2009

A new Tax Foundation report shows that the burden of corporate income taxes is likely borne by workers—not investors. This finding throws more cold water on the notion that higher corporate income taxes would provide greater progressivity in the tax system. In Tax Foundation Special Report No. 169, “The Corporate Income Tax and Workers’ Wages: New Evidence from the 50 States,” Senior Fellow Robert Carroll, Ph.D., finds that states with high corporate income taxes have likely depressed their workers’ wages over the long term, while states with low corporate taxes have boosted worker productivity and real wages.

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