Corporate Income Taxes Have Actually Been Increasing – Taxation
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An escalating debate surrounding taxes imposed on U.S. corporations has evolved as the presidential election approaches. The federal government receives taxes from both individuals and corporations based on taxation rates and income calculations. Contrary to popular believe, receipts on corporate income taxes have actually risen over the past three presidential administrations.
The primary factors affecting corporate tax revenue include corporate tax rates and economic conditions. Corporations tend to have larger profitability during periods of economic expansion thus paying more in corporate taxes regardless of the tax rate. A slowing economy as well as lower corporate tax rates can also reduce corporate tax receipts. Arguments have been made where lower corporate tax rates during slowing economic environments may help stimulate the economy whereas companies have been enticed to hire and invest more.
Sources: U.S. Treasury, IRS
