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Federal Corporate Income Tax Rates

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The federal corporate income tax was fist implemented in 1909, when the uniform rate was 1 percent for all business income above $5,000. Since then the rate peaked at 52.8 percent in 1969. On Jan. 1, 2018, the corporate tax rate was changed from a tiered structure that staggered corporate tax rates based on company income to a flat rate of 21 percent for all companies.

Federal Corporate Income Tax Rates
Year Rate Brackets or Exemptions Rate (a)
1909–1913 $5,000 exemption 1 percent
1913–1915 No exemption after March 1, 1913 1 percent
1916 None 2 percent
1917 None 6 percent
1918 $2,000 exemption 12 percent
1919–1921 $2,000 exemption 10 percent
1922–1924 $2,000 exemption 13 percent
1926–1927 $2,000 exemption 14 percent
1928 $3,000 exemption 12 percent
1929 $3,000 exemption 11 percent
1930–1931 $3,000 exemption 12 percent
1932–1935 None 14 percent
1936–1937 First $2,000 8 percent
Over $40,000 15 percent
1938–1939 First $25,000 12.5–16 percent
Over $25,000 19 percent (b)
1940 First $25,000 14.85–18.7 percent
$25,000 to $31,964.30 38 percent
$31,964.30 to $38,565.89 37 percent
Over $38,565.89 24 percent
1941 First $25,000 21–25 percent
$25,000 to $38,461.54 44 percent
Over $38,461.54 31 percent
1942–1945 First $25,000 25–29 percent
$25,000 to $50,000 53 percent
Over $50,000 40 percent
1946–1949 First $25,000 21–25 percent
$25,000 to $50,000 53 percent
Over $50,000 38 percent
1950 First $25,000 (Normal Rate) 23 percent
$25,000 to $50,000 (Add Surtax of 19 percent) 42 percent
Excess Profits Tax 30 percent
1951 First $25,000 (Normal Rate) 28.75 percent
$25,000 to $50,000 (Add Surtax of 22 percent) 50.75 percent
Excess Profits Tax 30 percent
1952 First $25,000 (Normal Rate) 30 percent
$25,000 to $50,000 (Add Surtax of 22 percent) 52 percent
Excess Profits Tax 30 percent
1953–1963 First $25,000 (Normal Rate) 30 percent
Over $25,000 (Add Surtax of 22 percent) 52 percent
1964 First $25,000 (Normal Rate) 22 percent
Over $25,000 (Add Surtax of 28 percent) 50 percent
1965–1967 First $25,000 (Normal Rate) 22 percent
Over $25,000 (Add Surtax of 26 percent) 48 percent
1968–1969 First $25,000 (Normal Rate) 22 percent
Over $25,000 (Add Surtax of 26 percent) 48 percent
With 10 percent Surcharge
First $25,000 (Normal Rate) 24.20 percent
Over $25,000 (Add Surtax of 26 percent) 52.80 percent
1970 First $25,000 (Normal Rate) 22 percent
Over $25,000 (Add Surtax of 26 percent) 48 percent
With 2.50 percent Surcharge (c)
First $25,000 (Normal Rate) 22.55 percent
Over $25,000 (Add Surtax of 26 percent) 49.20 percent
1971–1974 First $25,000 (Normal Rate) 22 percent
Over $25,000 (Add Surtax of 26 percent) 48 percent
1975–1978 First $25,000 (Graduated Normal Rate) 20 percent
Next $25,0000 (Graduated Normal Rate) 22 percent
Over $50,000 (Add Surtax of 26 percent) 48 percent
1979–1981 (d) First $25,000 17 percent
$25,000 to $50,000 20 percent
$50,000 to $75,000 30 percent
$75,000 to $100,000 40 percent
Over $100,000 46 percent
1982 First $25,000 16 percent
$25,000 to $50,000 19 percent
$50,000 to $75,000 30 percent
$75,000 to $100,000 40 percent
Over $100,000 46 percent
1983–1984 First $25,000 15 percent
$25,000 to $50,000 18 percent
$50,000 to $75,000 30 percent
$75,000 to $100,000 40 percent
Over $100,000 46 percent
1985–1986 First $25,000 15 percent
$25,000 to $50,000 18 percent
$50,000 to $75,000 30 percent
$75,000 to $100,000 40 percent
$100,000 to $1,000,000 46 percent
$1,000,000 to $1,405,000 (e) 51 percent
Over $1,405,000 46 percent
1987(f)–1993 First $50,000 15 percent
$50,000 to $75,000 25 percent
$75,000 to $100,000 34 percent
$100,000 to $335,000 (g) 39 percent
Over $335,000 34 percent
1994–2017 First $50,000 15 percent
$50,000 to $75,000 25 percent
$75,000 to $100,000 34 percent
$100,000 to $335,000 (g) 39 percent
$335,000 to $10,000,000 34 percent
$10,000,000 to $15,000,000 35 percent
$15,000,000 to $18,333,333 (h) 38 percent
Over $18,333,333 35 percent
2018–2025 None 21 percent

(a)In addition to the rates shown, certain types of “excess profits” levies were in effect in 1917–1921 and 1933–1945.

(b)Less adjustments: 14.025 percent of dividends received and 2.5 percent of dividends paid.

(c) The Tax Reform Act of 1969 extended the Surcharge at a 5 percent rate from January 1, 1970, through June 1, 1970. On an annualized basis the Surcharge would be 2.5 percent.

(d) The Revenue Act of 1978 repealed the corporate normal tax and surtax and in their place imposed a graduated rate structure with five brackets.

(e) The Deficit Reduction Act of 1984 placed an additional 5 percent to the tax rate in order to phase out the benefit of the lower graduated rates for corporations with taxable income between $1,000,000 and 1,405,000. Corporations with taxable income above $1,405,000, in effect, pay a flat marginal rate of 46 percent.

(f) Rates shown effective for tax years beginning on or after July 1, 1987. Taxable income before July 1, 1987, was subject to a two tax rate schedule or a blended tax rate.

(g) An additional 5 percent tax, not exceeding $11,750, is imposed on taxable income between $100,000 and $335,000 in order to phase out the benefits of the lower graduated rates.

(h) An additional 3 percent tax, not exceeding $100,000, is imposed on taxable income between $15,000,000 and $18,333,333 in order to phase out the benefits of the lower graduated rates. [88][89][90][91][92][93]

State Corporate Income Tax Rates

“Nevada, Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. Delaware, Oregon, and Tennessee have gross receipts taxes in addition to corporate income taxes,” according to the Tax Foundation. South Dakota and Wyoming have neither a corporate income tax nor gross receipts tax.

Rate ranges indicate there are different rates for various income brackets.

State Rate
Source: Abir Mandal, “State Income Tax Rates and Brackets, 2025,” taxfoundation.org, Jan. 21, 2025
Alabama 6.5 percent
Alaska 0.0 percent to 9.4 percent
Arizona 4.9 percent
Arkansas 1.0 percent to 4.3 percent
California 8.84 percent
Colorado 4.4 percent
Connecticut 7.5 percent to 8.25 percent
Delaware 8.7 percent
District of Columbia 8.25 percent
Florida 5.5 percent
Georgia 5.39 percent
Hawaii 4.4 percent to 6.40 percent
Idaho 5.7 percent
Illinois 9.5 percent
Indiana 4.9 percent
Iowa 5.5 percent to 7.1
Kansas 3.5 percent to 6.5 percent
Kentucky 5.0 percent
Louisiana 5.5 percent
Maine 3.5 percent to 8.93 percent
Maryland 8.25 percent
Massachusetts 8.0 percent
Michigan 6.0 percent
Minnesota 9.8 percent
Mississippi 4.0 to 5.0 percent
Missouri 4.0 percent
Montana 6.75 percent
Nebraska 5.2 percent
Nevada none
New Hampshire 7.5 percent
New Jersey 6.5 to 9.0 percent
New Mexico 5.9 percent
New York 6.5 to 7.25 percent
North Carolina 2.25 percent
North Dakota 1.41to 4.31 percent
Ohio none
Oklahoma 4.0 percent
Oregon 6.6 to 7.6 percent
Pennsylvania 7.99 percent
Rhode Island 7.0 percent
South Carolina 5.0 percent
South Dakota none
Tennessee 6.5 percent
Texas none
Utah 4.55 percent
Vermont 6.0 to 8.50 percent
Virginia 6.0 percent
Washington none
West Virginia 6.5 percent
Wisconsin 7.9 percent
Wyoming none

International Corporate Income Tax Rates

Jurisdiction 2021 2022 2023 2024
Sources: [87][96][97][98]
Afghanistan 20.0 percent 20.0 percent 20 percent 20 percent
Aland Islands 20.0 percent 20.0 percent 20 percent 20 percent
Albania 15.0 percent 15.0 percent 15 percent 15 percent
Algeria 26.0 percent 26.0 percent 26 percent 26 percent
American Samoa 34.0 percent 34.0 percent 34 percent 34 percent
Andorra 10.0 percent 10.0 percent 10 percent 10 percent
Angola 25.0 percent 25.0 percent 25 percent 25 percent
Anguilla 0.0 percent 0.0 percent 0 percent 0 percent
Antigua and Barbuda 25.0 percent 25.0 percent 25 percent 25 percent
Argentina 35.0 percent 35.0 percent 35 percent 35 percent
Armenia 18.0 percent 18.0 percent 18 percent 18 percent
Aruba 25.0 percent 25.0 percent 22 percent 22 percent
Australia 30.0 percent 30.0 percent 30 percent 30 percent
Austria 25.0 percent 25.0 percent 24 percent 23 percent
Azerbaijan 20.0 percent 20.0 percent 20 percent 20 percent
Bahamas 0.0 percent 0.0 percent 0 percent 0 percent
Bahrain 0.0 percent 0.0 percent 0 percent 0 percent
Bangladesh 32.50 percent 30.0 percent 28 percent 27.50 percent
Barbados 5.50 percent 5.50 percent 6 percent 9 percent
Belarus 18.0 percent 18.0 percent 20 percent 25 percent
Belgium 25.0 percent 25.0 percent 25 percent 25 percent
Belize 25.0 percent 0.0 percent 0 percent 0 percent
Benin 30.0 percent 30.0 percent 30 percent 30 percent
Bermuda 0.0 percent 0.0 percent 0 percent 0 percent
Bhutan 25.0 percent 25.0 percent 25 percent 25 percent
Bolivia (Plurinational State of) 25.0 percent 25.0 percent 25 percent 25 percent
Bonaire, Sint Eustatius and Saba 25.0 percent 25.80 percent 26 percent 25.80 percent
Bosnia and Herzegovina 10.0 percent 10.0 percent 10 percent 10 percent
Botswana 22.0 percent 22.0 percent 22 percent 22 percent
Brazil 34.0 percent 34.0 percent 34 percent 34 percent
British Virgin Islands 0.0 percent 0.0 percent 0 percent 0 percent
Brunei Darussalam 18.50 percent 18.50 percent 19 percent 18.50 percent
Bulgaria 10.0 percent 10.0 percent 10 percent 10 percent
Burkina Faso 28.0 percent 27.50 percent 28 percent 27.50 percent
Burundi 30.0 percent 30.0 percent 30 percent 30 percent
Cabo Verde 22.0 percent 22.0 percent 22 percent 21 percent
Cambodia 20.0 percent 20.0 percent 20 percent 20 percent
Cameroon 33.0 percent 33.0 percent 33 percent 33 percent
Canada 26.47 percent 26.21 percent 26 percent 26 percent
Cayman Islands 0.0 percent 0.0 percent 0 percent 0 percent
Central African Republic 30.0 percent 30.0 percent 30 percent 30 percent
Chad 35.0 percent 35.0 percent 35 percent 35 percent
Chile 15.0 percent 27.0 percent 27 percent 27 percent
China 25.0 percent 25.0 percent 25 percent 25 percent
China, Hong Kong Special Administrative Region 16.50 percent 16.50 percent 17 percent 16.50 percent
China, Macao Special Administrative Region 12.0 percent 12.0 percent 12 percent 12 percent
Colombia 31.0 percent 35.0 percent 35 percent 35 percent
Comoros 50.0 percent 50.0 percent 50 percent 50 percent
Congo 28.0 percent 28.0 percent 28 percent 28 percent
Cook Islands 20.0 percent 20.0 percent 20 percent 20 percent
Costa Rica 30.0 percent 30.0 percent 30 percent 30 percent
Cote d’Ivoire 25.0 percent 25.0 percent 25 percent 25 percent
Croatia 18.0 percent 18.0 percent 18 percent 18 percent
Cuba 35.0 percent 35.0 percent 35 percent 35 percent
Curacao 22.0 percent 22.0 percent 22 percent 22 percent
Cyprus 12.50 percent 12.50 percent 13 percent 12.50 percent
Czechia 19.0 percent 19.0 percent 19 percent 21 percent
Democratic Republic of the Congo 30.0 percent 30.0 percent 30 percent 30 percent
Denmark 22.0 percent 22.0 percent 22 percent 22 percent
Djibouti 25.0 percent 25.0 percent 25 percent 25 percent
Dominica 25.0 percent 25.0 percent 25 percent 25 percent
Dominican Republic 27.0 percent 27.0 percent 27 percent 27 percent
Ecuador 25.0 percent 25.0 percent 25 percent 25 percent
Egypt 22.50 percent 22.50 percent 23 percent 22.50 percent
El Salvador 30.0 percent 30.0 percent 30 percent 30 percent
Equatorial Guinea 35.0 percent 35.0 percent 35 percent 35 percent
Eritrea 30.0 percent 30.0 percent 30 percent 30 percent
Estonia 20.0 percent 20.0 percent 20 percent 20 percent
Ethiopia 30.0 percent 30.0 percent 30 percent 30 percent
Falkland Islands (Malvinas) 26.0 percent 26.0 percent 26 percent 26 percent
Faroe Islands 18.0 percent 18.0 percent 18 percent 18 percent
Fiji 20.0 percent 20.0 percent 20 percent 25 percent
Finland 20.0 percent 20.0 percent 20 percent 20 percent
France 28.41 percent 25.83 percent 26 percent 26 percent
French Polynesia 25.0 percent 25.0 percent 25 percent 25 percent
Gabon 30.0 percent 30.0 percent 30 percent 30 percent
Gambia 27.0 percent 27.0 percent 27 percent 27 percent
Georgia 15.0 percent 15.0 percent 15 percent 15 percent
Germany 29.90 percent 29.83 percent 30 percent 30 percent
Ghana 25.0 percent 25.0 percent 25 percent 25 percent
Gibraltar 12.50 percent 12.50 percent 13 percent 15 percent
Greece 24.0 percent 22.0 percent 22 percent 22 percent
Greenland 26.50 percent 26.50 percent 27 percent 26.50 percent
Grenada 28.0 percent 28.0 percent 28 percent 28 percent
Guam 21.0 percent 21.0 percent 21 percent 21 percent
Guatemala 25.0 percent 25.0 percent 25 percent 25 percent
Guernsey 0.0 percent 0.0 percent 0 percent 0 percent
Guinea 35.0 percent 35.0 percent 25 percent 25 percent
Guinea-Bissau 25.0 percent 25.0 percent 25 percent 25 percent
Guyana 25.0 percent 25.0 percent 25 percent 25 percent
Haiti 30.0 percent 30.0 percent 30 percent 30 percent
Honduras 25.0 percent 25.0 percent 30 percent 30 percent
Hungary 9.0 percent 9.0 percent 9 percent 9 percent
Iceland 20.0 percent 20.0 percent 20 percent 21 percent
India 30.0 percent 30.0 percent 30 percent 30 percent
Indonesia 22.0 percent 22.0 percent 22 percent 22 percent
Iran (Islamic Republic of) 25.0 percent 25.0 percent 25 percent 25 percent
Iraq 15.0 percent 15.0 percent 15 percent 15 percent
Ireland 12.50 percent 12.50 percent 13 percent 12.50 percent
Isle of Man 0.0 percent 0.0 percent 0 percent 0 percent
Israel 23.0 percent 23.0 percent 23 percent 23 percent
Italy 27.81 percent 27.81 percent 28 percent 28 percent
Jamaica 25.0 percent 25.0 percent 25 percent 25 percent
Japan 29.74 percent 29.74 percent 30 percent 30 percent
Jersey 0.0 percent 0.0 percent 0 percent 0 percent
Jordan 20.0 percent 20.0 percent 20 percent 20 percent
Kazakhstan 20.0 percent 20.0 percent 20 percent 20 percent
Kenya 30.0 percent 30.0 percent 30 percent 30 percent
Kiribati 30.0 percent 30.0 percent 30 percent 30 percent
Kosovo, Republic of 10.0 percent 10.0 percent 10 percent 10 percent
Kuwait 15.0 percent 15.0 percent 15 percent 15 percent
Kyrgyzstan 10.0 percent 10.0 percent 10 percent 10 percent
Lao People’s Democratic Republic 20.0 percent 20.0 percent 20 percent 20 percent
Latvia 20.0 percent 20.0 percent 20 percent 20 percent
Lebanon 17.0 percent 17.0 percent 17 percent 17 percent
Lesotho 25.0 percent 25.0 percent 25 percent 25 percent
Liberia 25.0 percent 25.0 percent 25 percent 25 percent
Libya 20.0 percent 20.0 percent 20 percent 20 percent
Liechtenstein 12.50 percent 12.50 percent 13 percent 12.50 percent
Lithuania 15.0 percent 15.0 percent 15 percent 15 percent
Luxembourg 24.94 percent 24.94 percent 25 percent 25 percent
Madagascar 20.0 percent 20.0 percent 20 percent 20 percent
Malawi 30.0 percent 30.0 percent 30 percent 30 percent
Malaysia 24.0 percent 24.0 percent 24 percent 24 percent
Maldives 15.0 percent 15.0 percent 15 percent 15 percent
Mali 30.0 percent 30.0 percent 30 percent 30 percent
Malta 35.0 percent 35.0 percent 35 percent 35 percent
Mauritania 25.0 percent 25.0 percent 25 percent 25 percent
Mauritius 15.0 percent 15.0 percent 15 percent 15 percent
Mexico 30.0 percent 30.0 percent 30 percent 30 percent
Micronesia (Federated States of) 30.0 percent 30.0 percent 30 percent 30 percent
Monaco 26.50 percent 25.0 percent 25 percent 25 percent
Mongolia 25.0 percent 25.0 percent 25 percent 25 percent
Montenegro 9.0 percent 15.0 percent 15 percent 15 percent
Montserrat 30.0 percent 30.0 percent 30 percent 30 percent
Morocco 31.0 percent 31.0 percent 32 percent 33 percent
Mozambique 32.0 percent 32.0 percent 32 percent 32 percent
Myanmar 25.0 percent 22.0 percent 22 percent 22 percent
Namibia 32.0 percent 32.0 percent 32 percent 32 percent
Nauru 25.0 percent 25.0 percent 25 percent 25 percent
Nepal 25.0 percent 25.0 percent 25 percent 25 percent
Netherlands 25.0 percent 25.80 percent 26 percent 25.80 percent
New Caledonia 30.0 percent 30.0 percent 30 percent 30 percent
New Zealand 28.0 percent 28.0 percent 28 percent 28 percent
Nicaragua 30.0 percent 30.0 percent 30 percent 30 percent
Niger 30.0 percent 30.0 percent 30 percent 30 percent
Nigeria 30.0 percent 30.0 percent 30 percent 30 percent
Niue 30.0 percent 30.0 percent 30 percent 30 percent
Northern Mariana Islands 21.0 percent 21.0 percent 21 percent 21 percent
Norway 22.0 percent 22.0 percent 22 percent 22 percent
Oman 15.0 percent 15.0 percent 15 percent 15 percent
Pakistan 29.0 percent 29.0 percent 29 percent 29 percent
Panama 25.0 percent 25.0 percent 25 percent 25 percent
Papua New Guinea 30.0 percent 30.0 percent 30 percent 30 percent
Paraguay 10.0 percent 10.0 percent 10 percent 10 percent
Peru 29.50 percent 29.50 percent 30 percent 29.50 percent
Philippines 30.0 percent 25.0 percent 25 percent 25 percent
Poland 19.0 percent 19.0 percent 19 percent 19 percent
Portugal 31.50 percent 31.50 percent 32 percent 31.50 percent
Puerto Rico 37.50 percent 37.50 percent 38 percent 37.50 percent
Qatar 10.0 percent 10.0 percent 10 percent 10 percent
Republic of Korea 27.50 percent 27.50 percent 27 percent 26.40 percent
Republic of Moldova 12.0 percent 12.0 percent 12 percent 12 percent
Romania 16.0 percent 16.0 percent 16 percent 16 percent
Russian Federation 20.0 percent 20.0 percent 20 percent 20 percent
Rwanda 30.0 percent 30.0 percent 30 percent 28 percent
Saint Barthelemy 0.0 percent 0.0 percent 0 percent 0 percent
Saint Helena 25.0 percent 25.0 percent 25 percent 25 percent
Saint Kitts and Nevis 33.0 percent 33.0 percent 33 percent 33 percent
Saint Lucia 30.0 percent 30.0 percent 30 percent 30 percent
Saint Martin (French Part) 35.0 percent 20.0 percent 20 percent 20 percent
Saint Vincent and the Grenadines 30.0 percent 30.0 percent 28 percent 28 percent
Samoa 27.0 percent 27.0 percent 27 percent 27 percent
San Marino 17.0 percent 17.0 percent 17 percent 17 percent
Sao Tome and Principe 25.0 percent 25.0 percent 25 percent 25 percent
Saudi Arabia 20.0 percent 20.0 percent 20 percent 20 percent
Senegal 30.0 percent 30.0 percent 30 percent 30 percent
Serbia 15.0 percent 15.0 percent 15 percent 15 percent
Seychelles 33.0 percent 25.0 percent 25 percent 25 percent
Sierra Leone 30.0 percent 25.0 percent 25 percent 25 percent
Singapore 17.0 percent 17.0 percent 17 percent 17 percent
Sint Maarten (Dutch part) 35.0 percent 34.50 percent 35 percent 34.50 percent
Slovakia 21.0 percent 21.0 percent 21 percent 21 percent
Slovenia 19.0 percent 19.0 percent 19 percent 22 percent
Solomon Islands 30.0 percent 30.0 percent 30 percent 30 percent
South Africa 28.0 percent 28.0 percent 27 percent 27 percent
South Sudan 25.0 percent 30.0 percent 30 percent 30 percent
Spain 25.0 percent 25.0 percent 25 percent 25 percent
Sri Lanka 24.0 percent 24.0 percent 30 percent 30 percent
State of Palestine 15.0 percent 15.0 percent 15 percent 15 percent
Sudan 35.0 percent 35.0 percent 35 percent 35 percent
Suriname 36.0 percent 36.0 percent 36 percent 36 percent
Swaziland 27.50 percent 27.50 percent 28 percent 25 percent
Sweden 20.60 percent 20.60 percent 21 percent 20.60 percent
Switzerland 19.70 percent 19.70 percent 20 percent 20 percent
Syrian Arab Republic 28.0 percent 28.0 percent 28 percent 25 percent
Taiwan 20.0 percent 20.0 percent 20 percent 20 percent
Tajikistan 23.0 percent 18.0 percent 18 percent 18 percent
Thailand 20.0 percent 20.0 percent 20 percent 20 percent
The former Yugoslav Republic of Macedonia 10.0 percent 10.0 percent 10 percent 10 percent
Timor-Leste 10.0 percent 10.0 percent 10 percent 10 percent
Togo 27.0 percent 27.0 percent 27 percent 27 percent
Tokelau 0.0 percent 0.0 percent 0 percent 0 percent
Tonga 25.0 percent 25.0 percent 25 percent 25 percent
Trinidad and Tobago 30.0 percent 30.0 percent 30 percent 30 percent
Tunisia 15.0 percent 15.0 percent 15 percent 15 percent
Turkey 20.0 percent 23.0 percent 25 percent 25 percent
Turkmenistan 8.0 percent 8.0 percent 8 percent 8 percent
Turks and Caicos Islands 0.0 percent 0.0 percent 0 percent 0 percent
Uganda 30.0 percent 30.0 percent 30 percent 30 percent
Ukraine 18.0 percent 18.0 percent 18 percent 18 percent
United Arab Emirates 0.0 percent 0.0 percent 9 percent 9 percent
United Kingdom of Great Britain and Northern Ireland 19.0 percent 19.0 percent 25 percent 25 percent
United Republic of Tanzania 30.0 percent 30.0 percent 30 percent 30 percent
United States of America 25.75 percent 25.81 percent 26 percent 26 percent
United States Virgin Islands 23.10 percent 23.10 percent 23 percent 23.10 percent
Uruguay 25.0 percent 25.0 percent 25 percent 25 percent
Uzbekistan 7.50 percent 15.0 percent 15 percent 15 percent
Vanuatu 0.0 percent 0.0 percent 0 percent 0 percent
Venezuela (Bolivarian Republic of) 34.0 percent 34.0 percent 34 percent 34 percent
Viet Nam 20.0 percent 20.0 percent 20 percent 20 percent
Wallis and Futuna Islands 0.0 percent 0.0 percent 0 percent 0 percent
Yemen 20.0 percent 20.0 percent 20 percent 20 percent
Zambia 35.0 percent 30.0 percent 30 percent 30 percent
Zimbabwe 24.72 percent 24.72 percent 25 percent 25 percent

Discussion Questions

  1. Should the U.S. corporate tax rate be raised? What about state corporate income tax rates? Explain your answers.
  2. Should a global corporate tax rate be implemented? If yes, what rate and why? If no, why not?
  3. Should corporations be taxed in any other ways? Explain your answers.

Take Action

  • Explore how the corporate tax rate works at the Tax Policy Center.
  • Consider the 2025 corporate tax rates at the Tax Foundation.
  • Analyze a corporate tax rate explainer at The Balance.
  • Consider how you felt about the issue before reading this article. After reading the pros and cons on this topic, has your thinking changed? If so, how? List two to three ways. If your thoughts have not changed, list two to three ways your better understanding of the “other side of the issue” now helps you better argue your position.
  • Push for the position and policies you support by writing U.S. senators and representatives.

Sources

  1. Fareed Zakaria, “Complexity Equals Corruption,” time.com, Oct. 31, 2011
  2. PricewaterhouseCoopers LLP, “Global Effective Tax Rates,” businessroundtable.org, Apr. 14, 2011
  3. Tax Foundation, “Federal Corporate Income Tax Rates, Income Years 1909-2012,” taxfoundation.org, July 6, 2012
  4. Bureau of Labor Statistics, “Labor Force Statistics from the Current Population Survey,” data.bls.gov (accessed May 18, 2018)
  5. Tax Policy Center, “Major Enacted Tax Legislation, 1940-49,” taxpolicycenter.org (accessed Dec. 13, 2012)
  6. Becky Yerak, “Aon Shareholders Approve Headquarters Move to London,” articles.chicagotribune.com, Mar. 17, 2012
  7. Emily Chasan, “At Big US Companies, 60 percent of Cash Sits Offshore: JP Morgan,” blogs.wsj.com, May 17, 2012
  8. Albert Wijeweera, “Corporate Tax Rates and Foreign Direct Investment in the United States,” Applied Economics, Oct. 30, 2009
  9. Tax Policy Center, “Major Enacted Tax Legislation, 1980-89,” taxpolicycenter.org (accessed Dec. 13, 2012)
  10. Robert Carroll, “Corporate Taxes and Wages: Evidence from the 50 States,” taxfoundation.org, Aug. 2009
  11. Mark Ahlseen, “Why Government Can’t Create Jobs,” fee.org (accessed Dec. 4, 2012)
  12. The President’s Economic Recovery Advisory Board, “The Report on Tax Reform Options: Simplification, Compliance, and Corporate Taxation,” whitehouse.gov, Aug. 2010
  13. Matthew Yglesias, “Dear CEOs: Please Stop Whining About Uncertainty,” slate.com, Dec. 11, 2012
  14. Christina Romer and David Romer, “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks,” aeaweb.org, June 2010
  15. John Cragg, “Empirical Evidence on the Incidence of the Corporation Income Tax,” Journal of Political Economy, Dec. 1967
  16. Kristina Peterson, “Report: Repatriation Tax Holiday a ‘Failed’ Policy,” wsj.com, Oct. 10, 2011
  17. Mark Cuban, “My Views on Corporations and Taxes,” blogmaverick.com, Nov. 15, 2011
  18. Phil Izzo, “Dearth of Demand Seen Behind Weak Hiring,” wsj.com, July 17, 2011
  19. Robert Farley, “Warren: GE Pays No Taxes,” factcheck.org, Apr. 24, 2012
  20. Reuven Avi-Yonah and Yaron Lahav, “The Effective Tax Rate of the Largest U.S. and E.U. Multinationals,” University of Michigan Program in Law and Economics, law.bepress.com, Oct. 2011
  21. Organisation of Economic Cooperation and Development, “Taxes on Corporate Income as Percentage of GDP,” oecd.org, Nov. 30, 2011
  22. Organisation of Economic Cooperation and Development, “Harmonised Unemployment Rates,” oecd.org, Oct. 2011
  23. Think Progress, “Buffet on Corporate Taxes,” youtube.com (accessed Nov. 26, 2012)
  24. Tax Policy Center, “Historical Source of Revenue as Share of GDP,” taxpolicycenter.org, Apr. 13, 2012
  25. Bureau of Labor Statistics, “Federal Government Receipts and Expenditures,” bls.gov, Feb. 1, 2012
  26. Jeff Cox, “Companies Are Sitting on More Cash Than ever Before,” cnbc.com, Oct. 23, 2012
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