Corporate Income Tax

  1. The Top Marginal Corporate Income Tax Rate in the U.S.

The top marginal federal corporate income tax rate in the United States is a flat 21% as indicated by the U.S. Congress, Joint Committee on Taxation (12). Therefore, the corporate tax liability applied in the country before the tax credit is calculated at 21% of the total taxable income, though there are special applicable rules for some corporate taxpayers like the public utilities. 

  • The Top Marginal Corporate Income Tax Rate before TCJA of 2017

Gale, Gelfond, Krupkin, Mazur, and Toder (5) indicates that the TCJA (Tax Cut and Jobs Acts) lowered the top marginal corporate income tax rate to 21% from 35%. This made the US corporate tax rate to fall below the average tax rate level for most of the OECD nations. Since 2018, TCJA also removed the corporate alternative minimum tax and the graduated corporate tax schedule. 

  • Democrats’ Argument for Higher Corporate Tax Rate

Ideally, the Democratic Party aims to utilize ...