Key facts:

  • The corporate income tax imposes a second and even a third layer of taxation on people’s incomes and is hidden, dishonest, and inconsistent with informed decision making in a free and democratic society.
  • North Carolina has had a corporate income tax since 1921. Between 1921 and 1991 the rate increased from 3 percent to 7.75 percent. It was then lowered every year between 1997 and 2000 to its current rate of 6.9 percent.
  • The corporate income tax is riddled with special exemptions meant to facilitate government manipulation of the economy.
  • The corporate income tax is based on the myth that corporations actually pay taxes. In fact ,corporations not only do not pay taxes, they cannot pay taxes.
  • All taxes “paid” by a corporation must come out of real people’s wallets or bank accounts. These real people are shareholders, employees, and customers.
  • In order to make intelligent voting decisions, citizens need to be aware of how much their government is costing them. The corporate income tax is a deceptive tax because it is invisible to those who are paying it.

Spotlight 416 The Corporate Income Tax: Repeal, Not Reform