Are corporate taxes progressive?

Corporate taxes are generally not progressive, meaning that they are not based on the corporation’s income or wealth. Instead, corporate taxes are typically levied at a flat rate or at a series of graduated rates, regardless of the corporation’s income or wealth.

In the United States, for example, corporate income tax is levied at a flat rate of 21% for tax years beginning after December 31, 2017. Prior to this, the corporate income tax rate was graduated, with higher rates applying to higher levels of income.

In other countries, the corporate tax rate may be based on the corporation’s income or profits, but it is generally not considered progressive in the same way that individual income taxes are progressive.

It’s worth noting that some countries have adopted progressive corporate taxes in the form of surtaxes or additional taxes on high-income corporations. These taxes are designed to target corporations with higher levels of income or profits and may be levied at higher rates than the standard corporate tax rate.

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