Tax Guru-Ker$tetter Letter
Saturday, May 28, 2005
Corporate Tax Rates
Q:
Subject: your siteHey great site- very informative. Thanks!I had a quick question though if you don't mind. I was looking at the c-corp tax rates and was curious if I was reading it right. Do the rates go up AND down? Why?Thanks again!
A:
While the last bracket appears to be a reduction, a flat tax of 35% effectively eliminates all of the tax savings from the lower rate brackets.
I have updated the schedule on my web site to make this more clear.
I hope this helps you understand the tax rates. Thanks for writing.
Kerry Kerstetter