Data from the Internal Revenue Service demonstrates that corporations are paying their smallest share of federal income tax revenues to the government since 1960.
Around $3.5 trillion of federal income tax dollars were collected by the IRS in 2018, according to a report from CBS News on Tuesday.
Of that amount, corporations paid around 7.8 percent of the total revenues collected. That number is down from the year before, when corporations paid close to 10 percent of all IRS income tax revenues collected.
After tax refunds are calculated into the mix, the share of IRS revenues by businesses goes even lower, to around 6.8 percent.
Meanwhile, individual income tax returns collectively made up around 57 percent of all revenues collected by the IRS. That number is higher than the 2017 rate, which was 54 percent at the time.
The overall changes are huge when you consider where things stood in 1960. At that moment in history, corporate income taxes made up around a quarter of all revenues collected by the IRS. Individuals’ collective income taxes made up just under half of the total.
— CBS News (@CBSNews) April 13, 2019
These latest numbers highlight some of the effects of the tax cuts that were passed into law in late 2017 by Republicans in Congress and President Donald Trump. Those cuts largely benefited corporations, and resulted in many big businesses paying much less than they did the year prior to them being enacted.
Indeed, as previous reporting from HillReporter.com pointed out, at least 60 corporations owed nothing in federal taxes in 2018. That number is twice as many as how many owed zero in taxes from 2017.
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Chris Walker is a freelance writer based out of Madison, Wisconsin. A millennial with more than a decade of journalism experience, Chris aims to provide readers with the latest and most accurate news of national importance. Chris likes to spend his free time doing activities in his community with his family.