How Corporations are Taxed by the U.S Government

HOW CORPORATIONS ARE TAXED BY THE U.S. GOVERNMENT Corporations have always been a major source of revenue for the IRS. Historically, the amount of money they pay in taxes has almost consistently gone up, particularly from 1990 to today. TAXES ON THE RISE CORPORATE INCOME TAX (IN MILLIONS OF DOLLARS) 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008 2010 2011 FISCAL YEAR CORPORATE INCOME TAXES On average, corporate taxes make up about 2% AS A PERCENTAGE OF THE GDP of the United States GDP. In 2010 that figure fell to 1.1%, the lowest it's been since the 1930s. 1935 55S$$SSSS$SS0.8% SS$$$1.2% 1940 $$$$$7.2% 1945 1950 3.8% $ 1955 4.5% 1960 $$$$4.1% 1965 3.7% 1970 $$53.2% 1975 2.6% 1980 $$$2.4% 50 1985 1.6% 1990 $$ 1.6% 1995 $5$2.1% 2000 2.1% 2005 2.2% 2010 SSS$$sss$ $$1.1% Source: Internal Revenue Service HOW MUCH OF THE TOTAL RECEIPTS DO CORPORATIONS PAY? The 2009 total federal tax receipts equaled $2,104,995,000,000. CORPORATIONS PAYING LESS OF THE TOTAL TAX While the dollar amount of total corporate receipts has steadily risen, the percentage of total taxes they pay has fallen. 6.57% 35.4% 26.5% In 2009, corporate income taxes equaled $138,229,000,000. 1945 1950 Source: U.S. Government Printing Office 27.3% 23.2% 21.8% 17% 14.6% 1955 1960 1965 1970 1975 12.5% 8.4% 9.1% 11.6% 10.2% 1980 1985 1990 E 1 1995 2000 12.9% 7.7% RECENT ESTIMATES BROKEN DOWN In 2007, the total revenue for 5,868,849 corporations was $28,762,923,553,000. 2005 2010 Source: Internal Revenue Service Their total pretax income was $3,667,455,525,000. The corporations paid $370,243,000,000 in total federal taxes. So they took home a total amount of $3,297,202,525,000. Source: Internal Revenue Service It's important to remember that the 5.9 million corporations in the U.S. only make up 18% of the 32 million businesses in the country. So income taxes generated from "corporations" are only a portion of the income taxes from "businesses." JUST 18% 18% 0/ Source: Internal Revenue Service RASMUSSEN FISCAL YEAR $15,988 $10,449 $17,861 521,494 $25,461 $32,829 S40,621 $64,600 $61,331 $157,004 $207,289 z8Z'B/ZS F| $304,306 $178,993 (ESTIMATED) 5305,771 (ESTIMATED)