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Taxation of Business Enterprises


Submitted By dydynell21
Words 89224
Pages 357

to accompany



Second Edition


Glenn E. Coven
Mills E. Godwin Professor of Law
College of William and Mary

Robert J. Peroni
Robert Kramer Research Professor of Law
The George Washington University

Richard Crawford Pugh
Distinguished Professor of Law
University of San Diego







Note to prior users: The order of this chapter has been revised. Users who wish to skip the introductory material and begin with the check-the-box regulations may now begin with paragraph 1075.

[¶ 1000]


This paragraph briefly summarizes the history of the corporate income tax. Some instructors may want to note here that the top corporate income tax rate reached a zenith in 1951 of 52 percent, before being reduced in 1964 to 48 percent, in 1978 to 46 percent, in 1986 to 34 percent (except for corporations with taxable incomes within a specified range that are subject to a top effective marginal rate of 39 percent). The maximum rate was raised in 1993 to 35 percent but only for a relative handful of generally publicly owned corporations earning over $10 million annually.

[¶ 1005]


This paragraph discusses the computation of a C corporation's taxable income, with particular emphasis on the differences between the computation of a C corporation's taxable income and the computation of an individual taxpayer's taxable income. Some instructors may want to mention here Section 163(j), which limits interest deductions by corporate payors for certain interest paid to exempt parties related to the payor. This provision was added to the Code

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