Article: Mr. Clinton's corporate tax. (damaging economic consequences from proposed rise in corporate income tax rates) (Column)

THE PROPOSED hike in corporate income-tax rates--from 34 to 36 per cent-has attracted little attention compared to other elements of the Clinton tax package. Supporters point to a long-term decline in corporate taxes relative to other federal taxes:

In 1950 corporate income taxes accounted for about one-third of all federal revenues. Despite continued revenue growth the tax share plummeted steadily, to a low of 5.3 per cent in 1982. Liberals blame the decline on tax loopholes or deductions available to corporations.

In reality the decline reflects the failure of pre-tax profits to grow as fast as other forms of income taxed by the government. In 1950 ...

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