Federal Taxes Have Shifted In Scale From Corporations to Individuals

Federal Taxes Have Shifted In Scale From Corporations to Individuals

Back in the 1950s, corporate income taxes made up 23 percent of federal revenues. Now that figure is under 8 percent. Put another way, corporate taxes were between 5 to 6 percent of GDP when Eisenhower was in office, but have since fallen to 2 percent today.

It is widely expected that reforms of the corporate income tax will be revenue neutral –closing loopholes while lowering rates. But why not ask corporations to make a bigger contribution in this hour of fiscal need?

This chart was originally featured in Taxes Matter: 2011, a series of infographics and writings by Demos on the need for progressive tax reform.