a) what collection actually is (rather than just a rate corporations get around with loop holes)
b) what collection has been in the past
The big corporate tax cut bill just passed by Congress and signed by President Bush will slash corporate income tax payments this year to their lowest level as a share of the economy since the early Reagan administration. This will be the second lowest level in the past 60 years.
The latest data from the Congressional Budget Office and the Joint Committee on Taxation indicate that corporate taxes will plummet to only 1.3 percent of gross domestic product this year. That will be the lowest since fiscal 1983, when corporate taxes bottomed out at 1.1 percent of the GDP level on the heels of the huge corporate tax reductions enacted in 1981.
Despite the expected economic recovery, the continuing effects of the 2002 corporate tax cuts will keep next year’s corporate tax payments at only 1.4 percent of GDP, the third lowest level in the past 60 years.
In comparison, over the past 60 years corporate income taxes averaged:
* 5.6 percent of the GDP during World War II,
* 4.5 percent in the Truman and Eisenhower administrations,
* 3.7 percent under Kennedy and Johnson,
* 2.7 percent under Nixon and Ford,
* 2.4 percent under Carter,
* 1.6 percent in the Reagan and Bush I administrations, and
* 2.1 percent under Clinton.
More on corporate taxes in the US:
"As I reported in June, while it's technically accurate that America has the second highest corporate tax rate of the 30 mostly wealthy countries of the Organization of Economic Cooperation and Development, in practice it has the fourth lowest corporate tax revenues among those nations, because of all the special tax favors we currently dole out to corporations and because many corporations shirk their patriotic tax responsibilities and park profits overseas.
Today even more evidence comes out to debunk the conservative corporate tax myth. The Associated Press reports (link via ThinkProgress) that a new U.S. General Accountability Office study finds 68 percent of U.S. corporations do not pay any taxes at all.
Conservatives concocted the corporate tax myth to conjure up an excuse for more corporate tax cuts."
2nd highest corporate tax rate myth.
Regarding tax fairness, this is interesting also:
The Minnesota Department of Revenue released a report in 2007 entitled "2007 Minnesota Tax Incidence Study."... Also, the Joint Religious Legislative Coalition has put together a business card-sized chart from the report that shows a 2009 estimate for effective tax rates by population decile for all state and local taxes. Unfortunately, the results reveal that Minnesota's state and local tax system disproportionately impacts low-income households.
As I've mentioned before, let's look at Arkansas:
"When all Arkansas taxes are totaled up, the study found that:
* Arkansas families earning less than $15,000—the poorest fifth of Arkansas non-elderly taxpayers—pay 12 percent of their income in Arkansas state and local taxes.
* Middle-income Arkansas taxpayers—those earning between $26,000 and $42,000—pay 11.7 percent of their income in Arkansas state and local taxes.
* But the richest Arkansas taxpayers—with average incomes of $911,500—pay only 6.8 percent of their income in Arkansas state and local taxes."
See the state by state break down here.
Poor people and the middle class pay a *greater* percent of their income in state and local taxes than the wealthy. It's the same everywhere. Check your state and see.