[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324330-105":59,"doc-detail-324330-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","integrating-business-and-personal-income-taxes","Integrating Business and Personal Income Taxes","","Discusses the corporate income tax’s role in federal revenue and political debate, emphasizing how raising corporate taxes ultimately increases the personal tax burden on individuals. Reviews the present corporate tax system and evaluates reform through equity and efficiency, focusing on revenue-neutral outcomes. Describes five reform proposals that range from abolishing corporate income tax to recharacterizing corporate taxation to integrate corporate and individual taxes, altering treatment of dividends, losses, and interest.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/integrating-business-and-personal-income-taxes/324330/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/integrating-business-and-personal-income-taxes/324330.png","ImageObject",300,407,{"name":92,"@type":93},"Clementine","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-11","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",13,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"Why does the article argue that higher corporate taxes can increase personal taxes?","Question",{"text":113,"@type":114},"It explains that individuals ultimately bear the burden because investors face taxes through dividends and capital gains, creating an overall double-tax effect. As corporate taxes rise, the economic outcomes feed through to personal tax liabilities.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What problem does the article highlight with the current corporate tax system?",{"text":118,"@type":114},"It points to double taxation at the corporate and shareholder levels and notes that the corporate tax discourages use of the corporate form relative to other business organizations. It also argues the system creates financial distortions in investment and financing decisions.",{"name":120,"@type":111,"acceptedAnswer":121},"What standards does the article use to judge whether corporate tax reform is justified?",{"text":122,"@type":114},"It emphasizes evaluating tax reform based on equity and efficiency. It proposes assessing whether the overall economy benefits from revenue-neutral reform that keeps total revenue 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\n\"To tax and to please,no more than tolove and be wise,is not given to men.\"  \nEdmund Burke's comment ings noless truetoday than it did in 1774.Oneneed only observe political candidates'perennial attempts to tar their opponentswith the “tax and spend”brush to knowthat Burke had gotten it right more thantwo centuries ago.  \nThe Treasury Department brought theissue of corporate income taxesintothe political forum early this year byreleasing a detailed study of severalproposals to \"integrate,\"or merge,thecorporate and individual incometaxes.'Many Americans cling to thenaive view that higher corporate taxesmean lower personal taxes.Ironically,the problem is just the opposite:Asbusiness taxes go up,individuals ul-timately pay more.  \nThis article first examines the problemssurrounding the current corporate taxsystem and then looks at how theseconcems are addressed in five specificreform proposals:1)abolishing the cor-porate income tax altogether,2)treat-ing corporations like partnerships,withall net income and losses passed on toshareholders and handled like ordinaryincome,3)allocating all net income toshareholders,but not net losses,4)ex-cluding dividend payments from  \nshareholders'taxable income,and  \n5)continuing to tax corporations,butallowing shareholders to deduct bothdividend and interest payments.  \n## ■ The Present System\n\nCongress enacted the corporate incometax in 1909 as an excise tax on theprivilege of using the corporate form.The presumption was that peoplewould be willing to pay for the right tocreate a legally separate entity thatprovided them with limited liability.  \nLike \"sin\"taxes on alcohol and tobac-co,the corporate tax has dual effects.That is,it raises revenue while discour-aging use of the taxed item.In the caseof business taxes,this means that thecorporate form is discouraged relativeto other types of business organization,such as sole proprietorship.partnership.or limited partnership.  \nToday,the federal govenment taxescorporate income at a 34 percent mar-ginal rate.Shareholders then pay anindividual tax of 15,28,or 31 percenton dividends received,and on anyappreciation of their shares at the pointof sale.²Thus,income earned at thecorporate level is subject to doubletaxation.(Although tax-exempt institu-tions such as pension funds hold a largeshare of corporate equity and bonds,  \nThough most Americans supportreforming federal tax laws to en-courage growth,there is no consensuson the best way to approach the issue.President Bush's proposal to reducethe capital gains tax has grabbedmost of the headlines over the lastseveral years,relegating other poS-sibilities to the back pages.ThisEconomic Commentary takes a lookat reforming the corporate incometax,an idea raised by PresidentsCarter and Reagan and the subjectof a recent study by the TreasuryDepartment.  \nthe ultimate recipients of most of theearnings generated by these organiza-tions do pay taxes.)In an effort to in-crease investors'returns,corporationsendeavor to circumvent double taxationby finding and exploiting legal loop-holes and timing options that reducetheir own taxable income.Combinedwith lower business tax rates and dwin-dling profits,tax avoidance schemeshave made corporate taxes a less impor-tant source of federal revenue,eventhough the corporate share of grossdomestic product(GDP)has increased.  \nBetween 1955 and passage of the TaxReform Act in 1986,real corporateprofits and income tax receipts zig-zagged downward despite the nation'seconomic growth(see figure 1).In con-stant(1982)dollars,corporate taxesfell from an average of $85 billion year-ly in the 1950s to $56 billion between1980 and 1986.³As a fraction of thegovemment's total tax receipts,this rep-resents a drop of more than half,fromabove 20 percent to below 10 percent.  \n## ■ Why Reform?\n\nGiven the transition costs associatedwith tax reform,any new proposal mustbe justified in tems of both","cbCaiaEddqky0OdP","https://ap.wps.com/l/cbCaiaEddqky0OdP","pdf",991022,"English","# The Present System\n## Why Reform?\n## Reform proposals","[{\"question\":\"Why does the article argue that higher corporate taxes can increase personal taxes?\",\"answer\":\"It explains that individuals ultimately bear the burden because investors face taxes through dividends and capital gains, creating an overall double-tax effect. As corporate taxes rise, the economic outcomes feed through to personal tax liabilities.\"},{\"question\":\"What problem does the article highlight with the current corporate tax system?\",\"answer\":\"It points to double taxation at the corporate and shareholder levels and notes that the corporate tax discourages use of the corporate form relative to other business organizations. It also argues the system creates financial distortions in investment and financing decisions.\"},{\"question\":\"What standards does the article use to judge whether corporate tax reform is justified?\",\"answer\":\"It emphasizes evaluating tax reform based on equity and efficiency. It proposes assessing whether the overall economy benefits from revenue-neutral reform that keeps total revenue constant.\"}]","Integrating Business and Personal Income Taxes | PDF",1789967638]