How does the corporate income tax work? Q.How does the corporate income tax work? A.The United States imposes a tax on the profits of US resident corporations up to a maximum rate of 35 percent. The corporate income tax is the third largest source of federal revenue, after the individual income tax and payroll taxes, and raised $343.8 billion in fiscal 2015. Read more about How does the corporate income tax work?
Who bears the burden of the corporate income tax? Q.Who bears the burden of the corporate income tax? A. The burden is shared among stockholders and, unintuitively, among a broader group of workers and investors. Read more about Who bears the burden of the corporate income tax?
Is corporate income double-taxed? Q.Is corporate income double-taxed? A.Yes, as a general rule. A corporation pays tax on its income, and its shareholders pay tax again when the income is distributed. But in practice, not all corporate income is taxed and many corporate shareholders are exempt from income tax. Read more about Is corporate income double-taxed?
