History of Corporate Taxation
In 2019, President Donald Trump created outrage when he decided to lower the tax rates of corporations. Donald Trump was of the opinion that high corporate tax rates in the United States are making domestic companies uncompetitive. As a result, companies are choosing to incorporate out of America. Donald Trump enacted a law that allowed the tax rate in the United States to be lowered from 35% to 21%.
This caused outrage as this move was viewed as being Donald Trumpís gift to his capitalist friends in corporate America. This only goes to show that people in America have started taking corporate tax as a given. However, this has not always been the case.
In this article, we will have a look at the history of corporate taxes in America.
The bottom line is that Donald Trumpís cut in tax rates is not exactly unprecedented. America has seen a wide variety of tax rates from 1% to 50% during the hundred years that corporate taxation has been present in the United States.
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