Question

Since the end of World War II, the trend in the corporate tax rate has been __________ relative to shifts in the entire economy.

Answer 1

The correct answer to this open question is the following.

Since the end of World War II, the trend in the corporate tax rate has been downward relative to shifts in the entire economy.

It is well known that the government of the United States has high corporate income taxes compared to other countries considered to be first-world nations. The tax is 27.7% However, the statutory corporate tax rate has been decreasing since the end of World War II. At the beginning of the 1950s, it was 50%. Now, as we noted above, the tax is over 28%