The Corporate Tax Burden: Facts and Fiction
The article analyzes how corporate tax rates affect company value and earnings, examining the impact of the 2017 US tax reform and the proposed Biden administration tax increases. It provides detailed empirical analysis of effective tax rates across US companies, sectors, and internationally, demonstrating that lower tax rates have not significantly reduced corporate tax payments and that tax behavior varies substantially by industry and company characteristics.
Metrics in this report
32.96percent
aggregate
Trailing 12 months through September 2020
18.19percent
aggregate
Accrual basis, trailing 12 months through September 2020
7-35percent
Early 20th century to 2017; lowest rates in 1930s, highest around 1980-2000
21percent
Post-2017 tax reform; proposed increase to 28% under Biden administration
25-27percent
US companies as of 2021