US Corporate Tax History 1-5-26

During the 1950s and most of the 1960s, the top U.S. federal corporate tax rate was around 52%. This rate was later reduced by the Revenue Act of 1964.  

1950s Corporate Tax Rates 

The top federal corporate tax rate was relatively stable throughout the decade: 

1950: The rate was raised from 38% to 45%.

1951: The rate was further increased to 52% (specifically 50.8% for a portion of the year) to finance the Korean War effort.

1952–1959: The rate remained at 52%. The Internal Revenue Code of 1954 extended the 52% rate after it was set to expire. 

1960s Corporate Tax Rates

The rate remained at 52% until a major tax reform in the middle of the decade. 

1960–1963: The rate was 52%.

1964: The Revenue Act of 1964 reduced the top corporate tax rate from 52% to 50%.

1965: The rate was further reduced to 48%.

1966–1969: The rate increased slightly, reaching a peak of 52.8% in 1968 and 1969. 

Note that these are the statutory top rates, and the actual effective tax rates paid by corporations were often lower due to various deductions, exemptions, and credits. 

During the 1950s and 1960s, U.S. federal corporate tax rates for large corporations were largely in the 52% to 53% range, peaking at 52.8% in 1968 and 1969, with some fluctuation. Rates were reduced in the mid-1960s before being raised again later in the decade. 

Key Insights

The top corporate tax rate was relatively stable at around 52% for much of the 1950s and early 1960s, a period when the economy experienced strong average annual growth.

The Revenue Act of 1964 temporarily reduced the top rate to 48% before it was raised again to a peak of 52.8% in the late 1960s.

The effective corporate tax rates (what companies actually paid after deductions and credits) were generally lower than the statutory rates, averaging more than 49% in the 1950s and 38% in the 1960s. 

https://www.google.com/search?q=what+were+us+federal+corporate+tax+rates+in+the+1950s+and+1960s

Comments

In the 1950s and 1960s, US Companies kept their Taxable Income to 5% to avoid high corporate taxes.

Norb Leahy, Dunwoody GA Tea Party Leader