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Compared to historical trends and other advanced economies, corporate tax revenues in the United States are low. President Biden recently proposed substantial changes to the U.S. corporate income tax system, such as increasing the corporate tax rate, as potential ways to reduce the structural imbalance between spending and revenues. Below are charts that focus specifically the current state of our corporate income tax system, examining and illustrating reasons for the downward trend.
The current tax code raises low levels of federal revenues from corporate income taxes, thus contributing to the growing national debt. However, there are opportunities for tax reforms that can help make our nation’s fiscal outlook more sustainable.
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