What Is Corporate Tax?
Profit is what is left after costs; tax is charged on the remainder after allowed deductions (26 U.S.C.
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1.What is corporate tax charged on?
Profit is what is left after costs; tax is charged on the remainder after allowed deductions (26 U.S.C. 11 and 63).
2.What is the US federal corporate tax rate in the video?
It is set in the tax code and applies to taxable income; other countries differ, sometimes a lot.
3.What are deductions, such as wages, rent and depreciation?
The law, not the company, decides which costs count; depreciation spreads the cost of a long-lasting asset over its years of use.
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Sources (5)
- U.S. Code, Title 26 Section 11 (Tax imposed), Cornell LII
- U.S. Code, Title 26 Section 63 (Taxable income defined), Cornell LII
- U.S. Code, Title 26 Section 172 (Net operating loss deduction), Cornell LII
- William M. Gentry, A Review of the Evidence on the Incidence of the Corporate Income Tax, U.S. Department of the Treasury, Office of Tax Analysis, Working Paper 101 (2007)
- Eigene Berechnung (Python/
Education only. Not financial advice.