A new survey shows that overhaul of the federal income tax is increasing the bite on corporations - which is just what Congress intended.
One thousand corporations surveyed by Tax Analysts paid about $7 billion more into the federal treasury last year than they did in 1986, when the tax laws underwent major revisions.The 1,000 companies, spread out among 49 industries, paid an average of 24.72 percent of their earnings in federal income tax in 1987, the study found. That compares with 21.54 percent in 1986 and 20.94 percent the previous year.
Three out of four corporations paid a higher rate last year than the year before. While a portion of the increase is due to higher earnings in 1987, most is attributable to the new tax law, said Tax Analysts, a Virginia-based research and publishing organization.