U.S. Businesses Pay or Remit 93 Percent of All Taxes Collected in America

There have been a number of recent media reports highlighting that the 2017 Tax Cuts and Jobs Act reduced the tax bills for many U.S. corporations. Setting aside the debate over whether a low tax bill is fair, what is missed in such stories is that American businesses are critical to the tax collection system at every level of government—federal, state, and local. Businesses either pay or remit more than 93 percent of all the taxes collected by governments in the U.S. Without businesses as their taxpayers and tax collectors, American governments would not have the resources to provide even the most basic services. In 2017, Organisation for Economic Co-operation and Development (OECD) economist Anna Milanez measured the amount of taxes that businesses in 24 countries contributed to the overall tax collection system. The U.S. was found to be one of the most “business dependent” tax systems in the industrialized world.[1] There are two ways that businesses…

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