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Article: Mr. Clinton's corporate tax. (damaging economic consequences from proposed rise in corporate income tax rates) (Column)
- Article from:
- National Review
- Article date:
- July 5, 1993
- Author:
CopyrightCOPYRIGHT 1993 National Review, Inc. 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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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 ...