U.S. Corporations Pay Highest Taxes in History

Corporate Rates Down, Corporate Tax Revenue Up

In 2017, Congress reduced the corporate income tax rate from 35% to 21%, while simultaneously expanding the amount of corporate income subject to tax. In 2017, before the lower corporate rate went into effect, corporate tax revenues were $297 billion, 25% lower than in 2021. Corporate taxes as a percentage of GDP increased during the same period, from 1.54% to 1.66%.

Limiting Competitiveness

The U.S. is the only country in the world that collects a minimum tax on the income its companies earn from their foreign operations, a policy known as GILTI. While the Organisation for Economic Co-operation and Development recently endorsed a global minimum tax, it faces many obstacles to actual implementation.

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Alliance for Competitive Taxation

Alliance for Competitive Taxation

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The Alliance for Competitive Taxation promotes U.S. jobs, investment and rising incomes through the establishment of a competitive U.S. tax system.