What is the Book Minimum Tax on corporations? Q.What is the Book Minimum Tax on corporations? A.The 2022 Inflation Reduction Act (IRA) introduced a new corporate minimum tax on book income that became effective January 1, 2023. Read more about What is the Book Minimum Tax on corporations?
How does the corporate income tax work? Q.How does the corporate income tax work? A.The United States imposes a tax on the profits of US resident corporations at a rate of 21 percent (reduced from 35 percent by the 2017 Tax Cuts and Jobs Act). The corporate income tax raised $424.7 billion in fiscal year 2022, accounting for 8.7 percent of total federal receipts and 1.7 percent of GDP. Read more about How does the corporate income tax work?
Is corporate income double-taxed? Q.Is corporate income double-taxed? A.C-corporations pay entity-level tax on their income, and their shareholders pay tax again when the income is distributed. But in practice, not all corporate income is taxed at the entity level, and many corporate shareholders are exempt from income tax. Read more about Is corporate income double-taxed?