This is an interesting (and timely) question. Corporations don’t pay just one tax rate. It depends on the level of taxable income. In order to find the answer, I looked at the instructions for Form 1120, on the IRS website. Under schedule J, line 2, it lists the tax rate schedule.
| Over | But not over | Tax is | Of the amount over |
|---|---|---|---|
| $0 | $50,000 | 15% | $0 |
| $50,000 | $75,000 | $7,500 + 25% | $50,000 |
| $75,000 | $100,000 | $13,750 + 34% | $75,000 |
| $100,000 | $335,000 | $22,250 + 39% | $100,000 |
| $335,000 | $10,000,000 | $113,900 + 34% | $335,000 |
| $10,000,000 | $15,000,000 | $3,400,000 + 35% | $10,000,000 |
| $15,000,000 | $18,333,333 | $5,150,000 + 38% | $15,000,000 |
| $18,333,333 | – | 35% | $0 |
So, those are the federal income tax rates. What about the state corporate income tax rate? According to Tax Foundation, the rate in Wisconsin for 2011 is 7.9%.
There might need to be a second post sometime soon to look further into these numbers.