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

States Can’t Just Hit Pause on Implications of Federal Tax Reform

May 10, 2018

What’s in the Iowa Tax Reform Package

May 9, 2018

Minnesota’s Tax Plans Make Modest Improvements

May 2, 2018

Missouri Corporate Tax Reform Bill Receives Bipartisan Support, But Prospects Uncertain

April 26, 2018

Reforming Arkansas’s Income Taxes

April 26, 2018

Seattle Business Head Tax Proposal Threatens its Thriving Tech Sector

April 26, 2018

A Measured Approach to Income Tax Relief in Minnesota

April 19, 2018

Missouri Senate Approves Corporate Tax Cuts

April 16, 2018

Kentucky Legislature Overrides Governor’s Veto to Pass Tax Reform Package

April 16, 2018

Three Tax Plans Under Consideration in Missouri

April 11, 2018

Updated Kentucky Tax Reform Package Would Boost State from 33rd to 18th on the State Business Tax Climate Index (Updated)

April 2, 2018

Two States Cut Taxes Due to Federal Tax Reform

March 19, 2018

New Jersey on Path to Tying for Highest Corporate Tax Rate in Country

March 12, 2018

Maine Tax Conformity Bill a Step Toward Better Policy

March 7, 2018

California’s Corporate Income Tax Rate Could Rival the Federal Rate

February 26, 2018

Testimony: Oregon Should Conform to the Federal International Provisions under the Tax Cut and Jobs Act

February 26, 2018

Tax Reform Moving Quickly in Georgia

February 23, 2018

Idaho Tax Reform Bill Advances

February 22, 2018

Iowa Governor Outlines Plan to Cut Rates and Repeal Federal Deductibility

February 14, 2018

The United States’ Corporate Income Tax Rate is Now More in Line with Those Levied by Other Major Nations

February 12, 2018