Who actually pays the corporate income tax has long been a problem for economists. Depending on the particular competitive circumstances in an industry, the tax is paid through some combination of lower wages for workers, lower capital gains for investors, and higher prices for consumers.
A new study from Ben Southwood of the Adam Smith Institute calculates that, on average, workers pay 57.6 percent of the corporate income tax. In other words, a tax that was instituted under President William Howard Taft in order to tax the rich, who owned almost all corporate stock in the early 20th century, now taxes mostly the average guy.
In 2013 the corporate income tax yielded $273 billion in revenue to the federal government, a little less than 10 percent of all federal revenues. Because it was never coordinated with the personal income tax that was instituted after the adoption of the 16th Amendment in 1913, it has been one of the main drivers of the ever greater complexity of the tax code as taxpayers have sought to legally avoid taxes by playing one tax off against the other.
While, heaven knows, the whole tax code needs to be junked and completely rethought, a good place to start would be by abolishing the corporate income tax.