Corporate Tax Rate In The United States

The corporate tax rate in the United States varies due to the income received. The Federal tax rates are as follows:

Taxable Income ($) Tax Rate

0 to 50,000 15%

50,000 to 75,000 $7,500 + 25% of the amount over 50,000

75,000 to 100,000 $13,750 + 34% of the amount over 75,000

100,000 to 335,000 $22,250 + 39% of the amount over 100,000

335,000 to 10,000,000 $113,900 + 34% of the amount over 335,000

10,000,000 to 15,000,000 $3,400,000 + 35% of the amount over 10,000,000

15,000,000 to 18,333,333 $5,150,000 + 38% of the amount over 15,000,000

18,333,333 and up 35%

There has been proposals for a reform for this rate to be at 15%. This reform of 15% would reduce corporate inversions and increase job growth and GDP in the United States. This reform backed by the Republican nominated Donald Trump, would let America “compete with the world and win by cutting the corporate tax rate to 15%, taking our rate from one of the worst to one of the best.” With this flat tax, it will effect both corporate and small business, however small business will benefit the most out of this rate. With small businesses ranging 34% to 39% in taxes, it hurts their income, prohibiting growth and ultimately closing businesses. For the corporate side,

What this means is that the US Treasury Department will not allow US firms to invert a foreign company that has been purchased in the last three years by the firm. The next action would be addressing “earnings stripping”. Earnings stripping is a tactic that large foreign-based companies use to avoid paying U.S. taxes by artificially shifting their profits out of the United States (Zients). To prevent this stripping, the Treasury wants to prevent debt that is not invested in the US from receiving any tax breaks. These tactics were brought up by President Obama on April 4 to close loopholes in order to make the tax system more