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

Wisconsin Plan Cuts Rates, Broadens Bases, Improves State Business Tax Climate Ranking

May 28, 2013

Rhode Island Governor Proposes Positive Corporate Tax Reform

May 1, 2013

Open letter to Sen. Bernie Sanders on Corporate Tax Rates

April 12, 2013

Tax Freedom Day® 2013 is April 18, Five Days Later Than Last Year

April 2, 2013

Weekly Map: Top State Corporate Income Tax Rates

March 26, 2013

State Corporate Income Tax Rates, 2000-2014

March 22, 2013

Rhode Island Governor Proposes Business Tax Cut, Legislative Leadership Agrees

March 21, 2013

New Mexico’s Lawmakers Compromise to Pass Corporate Tax Cut Reduction Package

March 20, 2013

Facts & Figures 2013: How Does Your State Compare?

March 18, 2013

State Corporate Income Tax Collections Per Capita, Fiscal Years 2007-2011

March 14, 2013

Sources of State and Local Tax Revenue, Fiscal Years 2008-2010

March 14, 2013

Maryland Legislative Testimony on the State Corporate Income Tax

February 26, 2013

Monday Map: Corporate Income Tax Revenue as a Percentage of All State/Local Tax Revenue

February 25, 2013

Comments on Who Pays? A Distributional Analysis of the Tax Systems in All 50 States

February 20, 2013

Minnesota Governor Proposes Poorly-Designed Tax “Reform”

February 12, 2013

North Carolina Tax Reform Options: A Guide to Fair, Simple, Pro-Growth Reform

January 23, 2013

Louisiana Tax Reform: Sizing up the Jindal Plan

January 18, 2013

Governor Jindal’s Bold New Tax Plan

January 11, 2013

Kentucky Tax Reform Commission Offers Disappointing Grab Bag

December 27, 2012

Ohio Considers Changes to Complex Municipal Tax Codes

December 3, 2012