How Corporate Taxes Help Our Economy free essay sample

This paper examines the national debate on corporate taxes and its effect on the United States economy. This paper explores the issues and history of corporate taxation. Corporations are taxed at a rate depending on their income. This paper discusses the pros and cons of dropping the corporate tax, the methods which can be used to drop or lower corporate taxes and why. The paper includes charts and statistics concerning corporate taxes. Table of Contents I. The Beginning of Corporate Income Tax II. The 1986 Tax Reform Act III. How Does Taxes Affect Business IV. Corporate Tax Rates V. Decline of the Corporate Income Tax VI. Why the Wide Range Between State and Corporate Taxes VII. How Does Corporate Tax Work with Multi-state Manufacturers? VIII. Does the Corporate Tax Help IX. Proposals of Corporate Income Tax X. Need of Stimulus XI. Future Research Concerning Corporate Taxes XII. Conclusions XIII. Works Cited Where did the corporate income tax begin? How does it affect our economy? What is the future of the corporate income tax? Will deleting corporate income tax be the answer for the economy? What about cutting part of this tax? How does the corporate income tax help the economy? These are questions that will be answered in this paper as well as how the corporate tax is affecting our economy now. We will write a custom essay sample on How Corporate Taxes Help Our Economy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The Beginning of Corporate Income Tax How the corporate tax began is an example of why tax systems can be worse than they should be and how little influence the economic profession has on government policy (Norton 2). Sometimes ideals look great when they are not that sound. Corporate taxes were used during wartime until 1909, when Congress enacted a 1 percent tax on corporation income. The rate increased until 1932 to 12.5 percent when the rate was changed to the progressive rates. Norton stated, Surtaxes on corporate income were added for excess profits during both world wars. The highest peacetime rate, 52.8 percent, was reached in the sixties (2).