Corporate income taxes are one of the smallest sources of state and local tax revenue. On average, only 3.7 percent of state and local tax revenues came from corporate income taxes in fiscal year 2014 (the most recent data available).
Some, however, mistake the corporate income tax as the entirety of a business’s tax burden. In reality, businesses pay many types of taxes (such as sales tax, property tax, excise taxes, and more) and the corporate income tax makes up only 9.5 percent of total business taxes.
The share of revenue from corporate income taxes will decline as more businesses organize as pass-throughs (S-corps, partnerships, sole proprietorships, etc.), which “pass their income through” to their individual tax returns and therefore are liable under the individual income tax code.
The Blueprint would lead to the creation of roughly 1.7 million new jobs and boost the after-tax incomes of the median household by nearly $5,000. . . California would gain 191,000+ jobs and an estimated gain in after-tax income for median households of $5,536.
. . . the Blueprint provides a net $1.6 trillion tax cut for American businesses over the next decade, as scored on a static basis. Thus, businesses in every state will benefit substantially.. . California would gain a business net tax relief of $205 billion. . . According to the TAG model, even accounting for the border adjustment, the Blueprint would boost the long-term level of GDP by 9.1 percent, investment by 28 percent, after-tax incomes by an average of 8.7 percent, and create 1.7 million new jobs.