A recent analysis suggests that higher corporate tax rates in the United States have not led to a reduction in the tax base, contradicting common concerns that such increases would discourage investment or business activity. Instead, the findings indicate that the revenue generated from these elevated rates has strengthened government finances without triggering negative economic effects. Economists highlight that the stability of the tax base—including corporate profits and employment—remains intact despite the policy change. The results challenge long-held assumptions about the potential downsides of raising corporate taxation.
Increasing US corporate tax raises government revenues without harming the tax base
