Editing Openai/69585baf-7fb8-8012-907c-372b92368fe6 (section)

==== 📊 1. U.S. Corporate Tax Rates (Federal) ====

===== Key Points =====
* A federal corporate income tax was first levied in 1909 (about 1%) and expanded significantly over the 20th century. Tax Foundation<ref>{{cite web|title=Tax Foundation|url=https://taxfoundation.org/data/all/federal/historical-corporate-tax-rates-brackets/|publisher=Tax Foundation|access-date=2026-01-03}}</ref>
* Mid-20th century (1950s–60s): The top statutory federal corporate rate often exceeded 50% (peaking around ~52–53%). Tax Foundation<ref>{{cite web|title=Tax Foundation|url=https://taxfoundation.org/data/all/federal/historical-corporate-tax-rates-brackets/|publisher=Tax Foundation|access-date=2026-01-03}}</ref>
* 1980s–1990s: Major reductions lowered the top rate to 34% in the Tax Reform Act of 1986 and then to 35% in 1993. LegalClarity<ref>{{cite web|title=LegalClarity|url=https://legalclarity.org/tax-rates-by-president-federal-income-and-corporate-history/|publisher=legalclarity.org|access-date=2026-01-03}}</ref>
* 2018 onward: The Tax Cuts and Jobs Act cut the federal corporate rate sharply to a flat 21%. Tax Foundation<ref>{{cite web|title=Tax Foundation|url=https://taxfoundation.org/data/all/federal/historical-corporate-tax-rates-brackets/|publisher=Tax Foundation|access-date=2026-01-03}}</ref>

Summary Timeline (Approx):

| Era/Policy            | Top Federal Corporate Tax Rate         |
| --------------------- | -------------------------------------- |
| 1909                  | ~1% (initial) 
Encyclopedia Britannica |
| 1930s                 | ~12–14% range 
Encyclopedia Britannica |
| 1950s–60s             | ~50–53% peak 
Tax Foundation
+1        |
| 1986 (Tax Reform Act) | ~34% 
LegalClarity                     |
| 1993–2017             | ~35% 
LegalClarity                     |
| 2018–present          | 21% flat rate 
Tax Foundation          |

💡 Effective vs statutory: Many corporations pay less than the statutory rate due to deductions, credits, and international rules; some large companies have reported effective rates in the teens or even lower. ITEP<ref>{{cite web|title=ITEP|url=https://itep.org/corporate-taxes-before-and-after-the-trump-tax-law/|publisher=itep.org|access-date=2026-01-03}}</ref>