Do NOT lower the corporate tax rate
The current corporate tax rate is 21%. There is debate about whether to raise or lower it. Lowering it could boost investment and jobs but reduce revenue. Raising it could generate significant revenue but potentially reduce business investment. The majority of Americans in recent surveys favored increasing the corporate tax rate.
Arguments For & Against
Pro Argument
The government has been lowering corporate taxes for half a century. The result: large corporations have used around 80% of that extra money to enrich their wealthy owners, rather than making investments that create American jobs. 49 Large corporations and their owners have grown wealthier, while the government deficit has grown larger. It is time corporations start paying their fair share like they used to.
Con Argument
The government has been lowering corporate taxes for half a century. The result: large corporations have used around 80% of that extra money to enrich their wealthy owners, rather than making investments that create American jobs. 49 Large corporations and their owners have grown wealthier, while the government deficit has grown larger. It is time corporations start paying their fair share like they used to.
Source document: FedBudget2025Quaire.pdf
| Type | Organization | Date | Nat | Rep | Dem | Gap | Metric |
|---|---|---|---|---|---|---|---|
| New PPC Survey (2026) | Program for Public Consultation | February 2026 | 62% | 56% | 71% | 15% | other |
| Deliberative Survey | Program for Public Consultation | June 2025 | 76% | 71% | 81% | 10% | other |
| Deliberative Survey | Program for Public Consultation | May 2019 | 78% | 68% | 86% | 18% | other |
Program for Public Consultation — February 2026
Corporations do not pay tax on their entire income; they only pay tax on their profits (income minus spending). The effective tax rate on corporate profits is currently 12%. Do you favor: Raising it to 16% Revenue (increases revenue $81B) Raising it to 14% (increases revenue $41B) Keeping it at 12% Lowering it to 10% (reduces revenue $41B) Lowering it to 8% (reduces revenue $81B).
Program for Public Consultation — June 2025
Just like individuals, corporations have exemptions, credits, and deductions that they apply to their profits before calculating their tax. Therefore, their effective tax rate—the amount that they actually pay—is on average about 12%... Which of the following options do you recommend?
Program for Public Consultation — May 2019
Here are six options for an extra tax on corporate income over $100 million. What is your recommendation?
Related Policies
Increase income tax rates on income over $500,000
60% national support
Tax capital gains at the (higher) ordinary income rate for income over $200,000
64% national support
Adopt a tax of 2% on wealth over $50 million, and 3% over $1 billion
80% national support
Maintain or increase the estate tax
81% national support