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

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

New Year Brings Multitude of New State Tax Laws

January 3, 2007

What West Virginia Needs to Do in Order to Compete in the 21st Century

December 11, 2006

Tax Pyramiding: The Economic Consequences of Gross Receipts Taxes

December 4, 2006

U.S. Lagging Behind OECD Corporate Tax Trends

May 5, 2006

A Twentieth Century Tax in the Twenty-First Century: Understanding State Corporate Tax Systems

September 30, 2005

Michigan “Index Analysis”: Elimination of Michigan SBT

May 23, 2005

Montana Corporate Tax Disclosure Lawsuit is Built on Shaky Foundations

March 22, 2005

Dates of Adoption of Major State Taxes

January 1, 2005

Statement Before the Senate Finance Committee of the Pennsylvania State Senate On Pennsylvania’s Business Tax Structure

May 11, 2004

Defending the “Indefensible”

June 1, 2002

The Approaching State Corporate Income Tax Crisis

September 10, 1995