Corporate income taxes make up a large part of the tax burden for small businesses. Not only companies, but everyone is affected by these taxes. In 1997, the U.S. government collected over $215 billion from them, or about $806 per person.

In 2023, the U.S. government collected approximately $475 billion from corporate income taxes. This amounts to about $1,427 per person in the country, based on the estimated population. This figure shows a significant increase from 1997, highlighting how corporate taxes continue to be a substantial part of the tax revenue.

These taxes are often overlooked but influence the economy and personal finances. The result is, hello, higher prices ! Because when companies face higher business tax brackets, they raise their prices. By Domino effects, it hits consumers and small businesses directly, limiting what they can buy.

Taxes also mean that companies have less money for their "share squirrels." ! Because of tax obligations, they might pay out less in dividends. This affects people who rely on these payments for their income. Further, these taxes can lead to double taxation. Company profits are taxed, and then shareholder dividends are taxed again. This discourages investment and harms people with stocks in retirement plans like IRAs or mutual funds.

It's also important to consider the LLC federal tax rate, which impacts how LLCs are taxed on their earnings. Understanding this rate is crucial for LLCs .