Corporate tax deadbeats

Biden and Congressional Democrats are talking about raising the corporate tax rate. The latest proposal looks to be boosting it from 21.0% to 26.5%, marked down from the 28.0% level that the administration circulated in April.  While that would be a step in the right direction, it only begins to address the seven-decade erosion in what business pays. Graphed below is the effective tax rate for nonfinancial corporations, drawn from the national income accounts. “Effective” means the rate actually paid—taxes paid divided by profits—not the rate on the books before clever lawyers… Read More

Ignore corporate whining

Joe Biden is proposing to finance his badly needed infrastructure program by raising corporate taxes. Business mostly likes the infrastructure program—everything works better when the basics aren’t falling apart—but it doesn’t want to pay for it. Nobody likes paying taxes (well, maybe some oddballs do, but to each their own), but over the last few years, Corporate America has been enjoying the lightest tax burden in history. That needs to change. Graphed below is the effective tax rate—the share of income that’s paid in tax, not the rate that’s on the books,… Read More