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According to the originators of the current U.S corporate tax code, the only rates are:

a. 35%
b. 40%
c. 34&
d. 25%
e. 15%

1 Answer

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Final answer:

The current U.S. corporate tax code imposes a flat 34% tax rate on incomes from $335,000 to $10,000,000, which increases to 35% above $18,333,333. Corporate tax revenue has declined as a share of GDP over time, reflecting changes in the economy and tax policy.

Step-by-step explanation:

According to the information from the Tax Policy Center, the current U.S. corporate tax rate structure imposes a flat 34% tax rate on incomes from $335,000 to $10,000,000, and this rate increases to a flat 35% above $18,333,333. Over the past several decades, the share of corporate income tax revenue as a percentage of GDP has fallen, illustrating changes in tax policy and economic conditions. Whereas it was between 5 and 6 percent of GDP in the early 1950s, it dropped to 1.3 percent in 2010, and the average has been around 1% to 2% of GDP during the first decade of the 2000s.

Despite these changes, corporate income tax remains the third-largest source of federal tax revenue, with the common term for corporate income being "profits." The decline from around 4% of GDP in the 1960s to the lower percentages today marks a significant shift in the dynamics of federal revenue collection. Individual income taxes and payroll taxes have grown to represent a larger proportion of federal revenue during this same period.

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