Center for State 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

New Podcast on New Jersey’s Business Tax Climate

November 4, 2008

North Dakota’s Measure 2: How Would Rate Cuts Affect the Peace Garden State’s Competitiveness?

October 17, 2008

Tax Foundation in the Editorial Pages: Nonpayers, Corporate Taxes, and the Index

October 13, 2008

The Right Prescription for Mississippi

August 19, 2008

Economic Growth Requires Bold Steps: Mississippi Should Consider Tax Reform Recommendations

July 18, 2008

State Government Revenue Up in First Quarter 2008

July 2, 2008

Dubious BATSA Scoring from the NGA

June 25, 2008

Film Tax Credits: Lower Taxes for Celebrities, Higher Taxes for You

May 30, 2008

New Tax Foundation Study Shows Half of U.S. States Tax Businesses More Heavily than Any Other Nation Does

March 18, 2008

U.S. States Lead the World in High Corporate Taxes

March 18, 2008

Corporate Income Taxes Paid by Congressional District

October 24, 2007

Corporate Tax Burden by Metropolitan Statistical Area (MSA), 2005

October 24, 2007

New State Business Tax Climate Index Released; Wyoming Is #1

October 11, 2007

Michigan House Democrats Release Solid SBT Replacement Plan

April 27, 2007

Putting Taxes on the Map: Federal Tax Burdens by City, County, Congressional District and State

March 22, 2007

A Golden Opportunity for Tax Reform

February 28, 2007

Corporate Tax Reform Will Enhance Kansas Competitiveness

February 21, 2007

Tax Reform Can Boost Kansas’ Tax Climate

February 21, 2007

Phone Company Sends Text Message: Remit Payment for Service and Taxes

February 13, 2007

Gross Receipts Taxes in State Government Finances: A Review of Their History and Performance

January 31, 2007