Corporate Income Tax information hub launched
Today, we have launched a new information hub on corporate income tax which sets out why it is the most critical of all taxes.
At the Fair Tax Foundation, we’re often asked why corporate income tax is such a major focus of our work. After all, corporation tax is just one of a number of taxes that business pays.
In our opinion, no other tax borne or collected by business comes close to having so many positive impacts. Corporation tax is much more than a revenue raiser for public services. It is crucial to fair business competition, improved national productivity and reduced inequality. It’s even been referred to by the Wall Street Journal as “The Tax That Billionaires Actually Pay.”
Which isn’t to say that other taxes are unimportant. They are really important. But corporate income tax is in a class of its own. Why corporate income tax is the most critical of all taxes sets out:
- Corporation tax is an increasingly crucial source of revenue to governments across the world
- Corporate tax avoidance is a clear and present significant problem
- Corporate tax dodging reduces national productivity
- Corporation tax is ‘red flag’ governance issue for many investors
- Corporation tax is a progressive tax and is crucial to reducing inequality
Paul Monaghan, Chief Executive, Fair Tax Foundation: “There is much to celebrate when looking at the corporate income tax contribution businesses are making across the world. It’s now the highest it has been since the turn of century, accounting for 18% of all taxes raised. Moreover, the average global corporation tax rate in 2025 has nudged upwards again for a third consecutive year, and now stands at 21% globally. The highly damaging global race to the bottom on headline corporate income tax rates that took place over recent decades looks to have ended, with hints that it may even be reversing. But, corporate tax avoidance remains substantive across much of the world and there is no room for complacency. Further improvements are by no means guaranteed. The Trump administration in the United States is doing its utmost to unwind recent global progress, with attacks on the very idea of a global minimum tax and heavy resistance toward new tax transparency rules that are rolling out in the EU and Australia.”
