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Article: The disappearing state corporate income tax.(Forum: state corporate income taxes)
- Article from:
- National Tax Journal
- Article date:
- March 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 National Tax Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
The corporate income tax has been an important source of federal tax revenue since it was created in 1909, but has been less important to states and even less important to local governments. Corporate taxes accounted for 12 percent of federal tax revenues in 1981, fell to a low of 8.8 percent in 2001, but have since rebounded to 9.9 percent of federal tax revenues in 2003. State corporate tax revenues made up 9.4 percent of total state tax revenue in 1981, but made up only five percent in 2002.
While the relative importance of corporate taxes has declined, corporate profits have grown. Using National Income and Products Account (NIPA) ...