Trickling Down

Why the corporate rate is so low


Nominal corporate income tax rate


What companies actually paid in fiscal 2011

Much of the tax debate has been about whether the 1% pay their fair share. But corporations paid just 12.1% of their domestic income in federal taxes in Washington's most recent fiscal year--the lowest rate in at least 40 years. Companies are supposed to be taxed at 35%. Why are they paying so little?

In part to stimulate the economy. Uncle Sam gave companies the right to write off 100% of the purchase price of new equipment in 2010 and 2011. That has direct benefits of spurring...

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