Understanding WHY corporate tax rates have fallen linearly over the past 6 decades.

[MarathonMike]

For those of you who might actually want to look beyond the political hype about corporate tax rates, here is an excellent source of information. I doubt any Trump Haters will bother to read it as it is much easier to just be told what to think.

Excerpt:
"This report discusses the three main factors for the decline in corporate tax revenue. First, the average effective corporate tax rate has decreased over time, mostly as a result of reductions in the statutory rate and changes affecting the tax treatment of investment and capital recovery (depreciation). Second, an increasing fraction of business activity is being carried out by partnerships and S corporations, which are not subject to the corporate income tax. This has led to an erosion of the corporate tax base. And third, corporate sector profitability has fallen over time, leading to a further erosion of the corporate tax base."

Reasons for the Decline in Corporate Tax Revenues

Corporate tax revenues have declined over the last six decades. In the post-World War II era, corporate tax revenue as a percentage of...

www.everycrsreport.com

 

[1srelluc]

When the .gov increases the corporate tax rate it's basically a tax on consumers.

Why?

That's because they are in the business of making money, it's also why we invest in corporations, to make money, and when there is a tax increase, they simply pass it on to the consumer to maintain shareholder value.

In the dem Bizzaro World they think that it does not happen that way.

 

[jwoodie]

For those of you who might actually want to look beyond the political hype about corporate tax rates, here is an excellent source of information. I doubt any Trump Haters will bother to read it as it is much easier to just be told what to think.

Excerpt:
"This report discusses the three main factors for the decline in corporate tax revenue. First, the average effective corporate tax rate has decreased over time, mostly as a result of reductions in the statutory rate and changes affecting the tax treatment of investment and capital recovery (depreciation). Second, an increasing fraction of business activity is being carried out by partnerships and S corporations, which are not subject to the corporate income tax. This has led to an erosion of the corporate tax base. And third, corporate sector profitability has fallen over time, leading to a further erosion of the corporate tax base."

Reasons for the Decline in Corporate Tax Revenues

Corporate tax revenues have declined over the last six decades. In the post-World War II era, corporate tax revenue as a percentage of...

www.everycrsreport.com

What does this have to do with corporate tax RATES?

 

[The Sage of Main Street]

When the .gov increases the corporate tax rate it's basically a tax on consumers.

Why?

That's because they are in the business of making money, it's also why we invest in corporations, to make money, and when there is a tax increase, they simply pass it on to the consumer to maintain shareholder value.

Oinkonomics 101

Higher prices lead to fewer sales and lower profits. Even the most laissez-fairy consumer is not going to pay more out of compassion for the seller's tax problem.