The Tax Foundation - Tax Foundation's CompeteUSA

Tax Foundation
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202.464.6200

Take the Corporate Tax Quiz

1. What is the top federal corporate income tax rate?

A. 30%
B. 15%
C. 23.5%
D. 35%

2. What year was the federal corporate income tax established?

A. 1951
B. 1913
C. 1909
D. 1927

3. What was the rate of the first federal corporate income tax?

A. 35% on income over $1,000
B. 1% on income over $5,000
C. 3% on income over $10,000
D. 10% on income over $1,500

4. Corporate tax revenues comprise how much of total revenues for the federal government?

A. 45%
B. 14%
C. 5%
D. 25%

5. In 2005, the federal government collected $320 billion in corporate tax revenues. How much did those business taxes cost the average American household?

A. Zero
B. $5,280
C. $375
D. $2,757

6. Which OECD country has the lowest federal/national corporate income tax rate?

A. Ireland
B. Germany
C. Japan
D. Portugal

7. Which OECD country has the highest federal/national corporate income tax rate?

A. France
B. Japan
C. Switzerland
D. Austria

8. Which OECD country has the second-highest federal/national rate?

A. Spain
B. Germany
C. Sweden
D. The U.S.

9. What is the top rate of the country with the lowest corporate income tax rate?

A. 12.5%
B. 30%
C. 3%
D. 21%

10. Which of the following is an effect of high business tax rates?

A. Lower wages
B. Higher prices
C. Lower dividends
D. All of the above

11. Which U.S. state has the highest state-level corporate income tax rate?

A. Texas
B. New Hampshire
C. Iowa
D. Alaska

12. Which states have no state-level corporate income tax?

A. Wyoming, South Dakota, and Nevada
B. Connecticut, Massachusetts, and Nebraska
C. New Jersey, California
D. None

13. What is the combined federal/state corporate income tax rate of the state with the highest rate?

A. 42.8%
B. 38%
C. 36.5%
D. 50%

14. How many U.S. states have a combined federal and state corporate income tax rate that is higher than Japan’s rate of 39.5%?

A. Zero
B. All of them
C. 3
D. 24

15. True or false? More business income is taxed under our individual income tax system than under the corporate income tax system.

A. True
B. False