Publications
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.
Additional questions about corporate taxes? Contact us at (202) 464-6200.
Publications from The Tax Foundation
- 2012 State Business Tax Climate Index, by Mark Robyn, January 25, 2012
- How to Judge a Tax Plan, by William McBride, December 15, 2011
- Rethinking U.S. Taxation of Overseas Operations: Subpart F, Territoriality, and the Exception for Active Royalties, by Joseph Henchman, November 22, 2011
- Slide Presentation: Tax Foundation Corporate Tax Briefing 2011, by Scott A. Hodge and William McBride, November 1, 2011
- Academic Research Suggests That the American Jobs Act Will Produce Few Jobs, by David S. Logan, September 19, 2011
- “Tax Reform: The Key to a Growing Economy and Higher Living Standards for All Americans” (Testimony Before the U.S. House of Representatives Committee on the Budget), by Scott A. Hodge, September 14, 2011
- U.S. Corporations Suffer High Effective Tax Rates by International Standards, by Philip Dittmer, September 13, 2011
- Beyond the Headlines: What Do Corporations Pay in Income Tax?, by William McBride, September 7, 2011
- The Proper Role of Taxes in Deficit and Debt Reduction, by David S. Logan, July 29, 2011
- The Budget Debate in Pictures: A Look at CBO Projections and the Role that Bush-Era Tax and Spending Policies Play in the Deficit , by William McBride, June 14, 2011
- Nevada May Consider New Business Taxes, by Joseph Henchman, May 18, 2011
- Ten Benefits of Cutting the U.S. Corporate Tax Rate, by Scott A. Hodge, May 11, 2011
- Ten Reasons the U.S. Should Move to a Territorial System of Taxing Foreign Earnings, by Scott A. Hodge, May 11, 2011
- U.S. Multinationals Paid $100 Billion in Foreign Income Taxes According to Most Recent IRS Data , by Scott A. Hodge, April 26, 2011
- Census Bureau Releases 2010 State Tax Collection Data, by Mark Robyn, April 5, 2011
- Testimony of Scott Hodge before the U.S. Senate Budget Committee, Hearing on Distribution and Efficiency of Spending in the Tax Code, by Scott A. Hodge, March 9, 2011
- Michigan Gov. Snyder’s Budget Improves Competitiveness but Costs Individuals, by Alex Wood-Doughty and Kail Padgitt, March 9, 2011
- Who Benefits from Corporate “Loopholes”?, by Scott A. Hodge, March 2, 2011
- VIdeo: Tax Foundation President Scott Hodge Testifies to Minnesota Legislature on Corporate Tax Reform, February 1, 2011
- Illinois Corporate Tax Hike Inches U.S. Closer to #1 Ranking Globally, by Scott A. Hodge, January 14, 2011
- Illinois Approves Sharp Income Tax Increase, Fourth-Highest Corporate Tax Rate, by Joseph Henchman and Kail Padgitt, January 13, 2011
- Illinois Considers Sharp Income Tax Increase, Highest Corporate Tax Rate, by Joseph Henchman and Kail Padgitt, January 7, 2011
- Over One-Third of New Tax Revenue Would Come from Business Income If High-Income Personal Tax Cuts Expire, September 13, 2010
- Where Do State and Local Governments Get Their Tax Revenue?, by Kail Padgitt and Ryan Forster, August 27, 2010
- Putting Corporate Tax “Loopholes” In Perspective, by Scott A. Hodge, August 3, 2010
- Who Benefits Most from Targeted Corporate Tax Incentives?, by Scott A. Hodge, July 27, 2010
- Nevada Panel Considering Tax Reform Options, Including New Business Taxes, by Joseph Henchman, July 13, 2010
- The Economic Effects of the Lower Tax Rate on Dividends, by Robert Carroll, June 7, 2010
- Testimony of Joseph Henchman Before the U.S. House Committee on the Judiciary, Subcommittee on Commercial and Administrative Law--Hearing on the Impact of Congressional Legislation on State and Local Government Revenues, by Joseph Henchman, April 15, 2010
- New KPMG International Location Study: U.S. Is Falling Behind; Taxes Are a Major Fault, by Scott A. Hodge, April 14, 2010
- Illinois Should Respond to Recession by Broadening Tax Bases and Spending Frugally, Not by Raising the Personal Income Tax Rate, by Justin Higginbottom, March 11, 2010
- Slideshow: Taxes, Competitiveness & the Idaho Business Climate, March 2, 2010
- Pennsylvania Governor Proposes Spending Boost, Broader Sales Tax, Heavier Business Taxes, by Joseph Henchman, February 25, 2010
- The Importance of Tax Deferral and A Lower Corporate Tax Rate, by Robert Carroll, February 19, 2010
- Oregon Referendum Could Reinstate Higher Income Tax Rates, by Joseph Henchman and Kail Padgitt, January 7, 2010
- Ohio's Poor Tax Climate at the Heart of the State's Economic and Fiscal Woes, by Scott A. Hodge, January 7, 2010
- Pennsylvania’s Tax System--Not Weak Economy--Responsible for Job Losses and Out-Migration, by Scott A. Hodge, December 2, 2009
- Comparing Financing of the House and Senate Health Care Reform Plans, by Gerald Prante, October 30, 2009
- Taxes, Competitiveness and the New Hampshire Business Climate (Testimony before the New Hampshire Legislature), by Scott A. Hodge, October 21, 2009
- Where Do State and Local Governments Get Their Tax Revenue?, by Gerald Prante, October 9, 2009
- Corporate Taxes and Wages: Evidence from the 50 States, by Robert Carroll, August 6, 2009
- U.S. Lags while Competitors Accelerate Corporate Income Tax Reform, by Andre Dammert and Scott A. Hodge, August 5, 2009
- The Corporate Income Tax and Workers’ Wages: New Evidence from the 50 States, by Robert Carroll, August 3, 2009
- New Surtax and Expiring Tax Cuts Could Hit Business Income Simultaneously, by Scott A. Hodge, July 17, 2009
- The Dam Bursts in the Beaver State: Oregon’s Wave of Tax Increases and New Spending, by Joseph Henchman and Jack Mountjoy, July 9, 2009
- Poor State Fiscal Policy: North Carolina Passes Tax Breaks to Attract Apple, June 3, 2009
- Bank Secrecy, Tax Havens and International Tax Competition, by Robert Carroll, May 13, 2009
- Moving Forward with Bipartisan Tax Policy, by Robert Carroll, John E. Chapoton, Maya MacGuineas and Diane Lim Rogers, February 12, 2009
- The Effect of the Presidential Candidates' Tax Plans on Flow-Through Businesses, by Robert Carroll, October 23, 2008
- North Dakota's Measure 2: How Would Rate Cuts Affect the Peace Garden State's Competitiveness?, by Joseph Henchman, October 17, 2008
- KPMG Study Finds U.S. Corporate Tax Rate Higher Than Every Global Region, by Scott A. Hodge, September 17, 2008
- Comparing International Corporate Tax Rates: U.S. Corporate Tax Rate Increasingly Out of Line by Various Measures, by Robert Carroll, August 28, 2008
- Tax Foundation Urges Texas Court to Avoid Sparking an Interstate Tax War, by Joseph Henchman and Paul Galindo, August 25, 2008
- The Right Prescription for Mississippi, by Joseph Henchman, August 19, 2008
- Senator McCain's and Senator Obama's Tax Plans: Different Roads Taken, by Robert Carroll, August 15, 2008
- U.S. Corporate Taxes Now 50 Percent Higher than OECD Average, by Scott A. Hodge, August 13, 2008
- Testimony on H.R. 5267, the Business Activity Tax Simplification Act of 2008, by Joseph Henchman, June 24, 2008
- Arizona's Special Interest Laundry List, by Josh Barro and Joseph Henchman, June 24, 2008
- Certainty and Uniformity: The Standards (Testimony Before Congress on H.R. 5267, the Business Activity Tax Simplification Act of 2008), by Joseph Henchman, June 24, 2008
- The Distributional Impact of Windfall Profits Taxes and a Gas Tax Holiday, by Gerald Prante, May 2, 2008
- Urging a Stop to South Dakota's Discriminatory Insurance Taxes -- Metropolitan Life Ins. Co. v. Kinsman, by Joseph Henchman, April 15, 2008
- Tax: Fundamentals in Advance of Reform (Testimony of Robert J. Carroll Before the Senate Committee on Finance), by Robert Carroll, April 15, 2008
- The Economic Consequences of Being Left Behind: A U.S. Business Tax System that is Out of Line Internationally, by Robert Carroll, April 4, 2008
- U.S. States Lead the World in High Corporate Taxes, by Scott A. Hodge, March 18, 2008
- Fiscal Stimulus: Missing the Big Picture?, by Robert Carroll, January 11, 2008
- Congress Finally Considers Lower Corporate Tax Rate but Underestimates International Tax Competition, by Chris Atkins and Scott A. Hodge, October 25, 2007
- Personalizing the Corporate Income Tax, by Scott A. Hodge and Gerald Prante, October 25, 2007
- Q&A on the Carried Interest Debate, by TF Staff, September 7, 2007
- U.S. Still Lagging Behind OECD Corporate Tax Trends, by Chris Atkins and Scott A. Hodge, July 24, 2007
- Asking the U.S. Supreme Court to Settle Tax Nexus Issue: FIA Card Services, N.A., fka MBNA America Bank, N.A., v. Tax Commissioner of the State of West Virginia, by Chris Atkins and Kyle O. Sollie, May 9, 2007
- The Hidden Tax for Sm(all) Business in Governor Blagojevich's Gross Receipts Tax, by Chris Atkins, March 29, 2007
- Putting Taxes on the Map: Federal Tax Burdens by City, County, Congressional District and State, by Andrew Chamberlain and Gerald Prante, March 22, 2007
- Estimating Federal Tax Burdens for Major City Areas, Counties, and U.S. Congressional Districts, by Andrew Chamberlain and Gerald Prante, March 22, 2007
- Corporate Tax Reform Will Enhance Kansas Competitiveness, by Chris Atkins and Jonathan Williams, February 21, 2007
- Gross Receipts Taxes in State Government Finances: A Review of Their History and Performance, by John L. Mikesell, January 31, 2007
- Tax Reform in Michigan: Replacing the Single Business Tax, by Chris Atkins and Jonathan Williams, January 24, 2007
- What West Virginia Needs to Do in Order to Compete in the 21st Century, by Curtis S. Dubay, December 11, 2006
- Tax Pyramiding: The Economic Consequences of Gross Receipts Taxes, by Andrew Chamberlain and Patrick Fleenor, December 4, 2006
- Double-Taxing Capital Income: How Bad Is the Problem?, by Patrick Fleenor, November 16, 2006
- Options for Reforming the U.S. Corporate Income Tax, by Jonathan Williams and Patrick Fleenor, May 8, 2006
- Surge in Corporate Income Tax Collections Offers Opportunity for Tax Reform, by Jonathan Williams, May 8, 2006
- Growing Amount of Business Income Taxed by the Individual Income Tax Code, by Gerald Prante and Jonathan Williams, May 8, 2006
- U.S. Lagging Behind OECD Corporate Tax Trends, by Chris Atkins and Scott A. Hodge, May 5, 2006
- Large Oil Industry Tax Payments Undercut Case for Windfall Profits Tax, by Jonathan Williams and Scott A. Hodge, January 31, 2006
- The U.S. Corporate Income Tax System: Once a World Leader, Now A Millstone Around the Neck of American Business, by Chris Atkins and Scott A. Hodge, November 15, 2005
- A Twentieth Century Tax in the Twenty-First Century: Understanding State Corporate Tax Systems, by Chris Atkins, September 30, 2005
- Tax Reform and Revenue Neutrality: President's Panel Should Avoid the Redistribution of 1986, by Chris Atkins, July 13, 2005
- Michigan "Index Analysis": Elimination of Michigan SBT, by Chris Atkins and Curtis S. Dubay, May 23, 2005
- Montana Corporate Tax Disclosure Lawsuit is Built on Shaky Foundations, by Chris Atkins, March 22, 2005
- Statement Before the Senate Finance Committee of the Pennsylvania State Senate On Pennsylvania's Business Tax Structure, by Thomas O. Armstrong, Ph.D., May 11, 2004
- Manufacturing Employment, Productivity and the Business Cycle, by John A. Tatom, Ph.D., February 1, 2004
- The Corporate Tax Burden, by Stephen Slivinski, November 1, 2003
- The Economic and Political Implications of Repealing the Corporate Alternative Minimum Tax, by Michael S. Knoll and Terrence Chorvat, February 1, 2002
- The Economics of Government Subsidies: The Case of Rural Electric Cooperatives and the Propane Gas Industry, by William P. Orzechowski, November 1, 2001
- A Primer on the Corporate Income Tax: Incidence, Efficiency and Equity Issues, by Michael L. Marlow, November 1, 2001
- The Corporate Tax Burden, by John S. Barry, October 1, 2001
- The Federal Corporate Income Tax Since WWII, by J. Scott Moody, August 1, 1998
- A Half Century of Small Business Federal Income Tax Rates and Collections, by Arthur P. Hall, Ph.D. and Gary Leff, October 1, 1996
- The Impact of Federal Taxes on the Use of Debt by Closely-Held Corporations, by John R. Robinson, Stephen T. Limberg and C. Bryan Cloyd, November 1, 1995
- The Determinants of the Choice of Income Type as a Measure of Performance in Bonus Plans, by Daryl M. Guffey and Gregory A. Carnes, October 1, 1995
- The Approaching State Corporate Income Tax Crisis, by J. Dwight Evans, September 10, 1995
- Has Taxable Income Overtaken Financial Reporting Income?, by B. Anthony Billings, October 1, 1994
- Effects of Tax Policy on Corporate Financing Decisions: Integration of the Corporate and Personal Income Tax, by Craig T. Schulman, Ph.D., Deborah W. Thomas, J.D. and Keith F. Sellers, D.B.A, October 1, 1994
- A Primer on the Corporate Alternative Minimum Tax, by Chris R. Edwards, March 1, 1994
- The Research and Experimentation Tax Credit, by Chris R. Edwards, November 1, 1993
- The Corporate Tax Burden, by Chris R. Edwards, March 1, 1993
- Corporate Tax Burden Rises, by Paul G. Merski, July 1, 1991
- Proceedings of a Seminar on R&D Tax Policy, March 8, 1990
- The Corporate Tax Burden, by Paul G. Merski, January 1, 1990
- Competitive Tax Disadvantages Faced by U.S. Multinationals, by B. Anthony Billings, January 1, 1990
- The Uses of a Business Transfer Tax, by TF Staff, December 20, 1985
- VAT After All?, August 5, 1985
- Taxing Foreign Source Income: A Businessman's View, by B. Kenneth Sanden, December 1, 1977
- Corporate Tax Integration: A Quantitative Comparison of Alternatives, by Martin S. Feldstein and Daniel J. Frisch, December 1, 1977
- Taxing Foreign Source Income: The Economic and Equity Issues, by Norman B. Ture, May 1, 1976
- Issues In Federal Tax Revision: Tax Developments in 1975, December 31, 1975
- Issues In Federal Tax Revision: Tax Developments in 1974, December 31, 1974
- The Corporation Income Tax: An Examination of Its Role in the Federal Tax System, by TF Staff, December 1, 1968
- Current Problems and Issues in State Taxation of interstate Commerce, January 30, 1966
- Reexamining the Federal Corporation Income Tax, by TF Staff, January 1, 1958
- Factors Affecting Industrial Location: A Bibliography, by TF Staff, December 1, 1956
- Project Note No. 28 Major State Taxes 1939 and 1950, December 31, 1951