A constant refrain heard from conservatives for decades is that American corporations are at a competitive disadvantage to foreign competitors due to high U.S. corporate tax rates. Panderbear has a one word reply to that claim. "Bull!"
This claim by Republicans is totally disingenuous, because of the difference between high theoretical marginal tax rates and what corporations actually pay. After all the special deductions, dispensations, and loopholes, effective U.S. corporate tax rates are among the lowest in the world. The fact that American corporations continue to dominate the world economy belies the Republican claim that they are at a disadvantage.
The real bottom line is not what the theoretical tax rates are, but what rates are actually paid. The chart shows that ever since WWII when individual and corporate percentage contributions to government revenues were approximately equal, corporations have received increasingly favorable tax treatment compared to individuals.
At the end of the war corporate and individual income taxes each constituted about 40% of federal revenues. The corporate share has decreased over the decades to roughly 10% while individuals are contributing close to 50% percent. Instead of contributing equally individuals now subsidize corporations by a 4 to 1 ratio.
Panderbear thinks the data expose Republican claims regarding high corporate tax rates as obvious panders. U.S. corporations are currently getting a virtual free ride at the expense of individual tax payers. This is one more factor contributing to increasing income divergence and a growing wealth gap.