Final answer:
Increasing individual tax rates on ordinary income does not directly affect the overall tax rate on corporate taxable income. However, it can indirectly impact the overall tax rates for owners of flow-through entities.
Step-by-step explanation:
If Congress increases individual tax rates on ordinary income while leaving all other tax rates unchanged, it would not directly affect the overall tax rate on corporate taxable income. Corporate income taxes are separate from individual income taxes, so changes in individual tax rates do not impact corporate tax rates.
However, changes in individual tax rates can indirectly affect the overall tax rates for owners of flow-through entities such as partnerships, S corporations, and limited liability companies (LLCs). Flow-through entities do not pay taxes at the entity level; instead, the profits and losses are passed through to the owners' personal tax returns. If individual tax rates increase, the owners of flow-through entities may experience higher personal tax liabilities on their share of the profits.