Relationship between statutory corporate tax rate and economic growth, 1948–2010
| Real GDP growth | Statutory corporate tax rate (1-year lag) | Trend line |
|---|---|---|
| -3.5 | 35.0 | 40.2 |
| -2.0 | 46.0 | |
| -0.9 | 52.0 | |
| -0.9 | 38.0 | |
| -0.6 | 52.0 | |
| -0.6 | 48.0 | |
| -0.5 | 38.0 | |
| -0.3 | 35.0 | |
| -0.3 | 46.0 | |
| -0.2 | 34.0 | |
| -0.2 | 48.0 | |
| 0.2 | 52.8 | |
| 1.1 | 35.0 | |
| 1.8 | 35.0 | |
| 1.9 | 34.0 | |
| 1.9 | 35.0 | |
| 2.0 | 52.0 | |
| 2.0 | 52.0 | |
| 2.3 | 52.0 | |
| 2.4 | 52.0 | |
| 2.5 | 35.0 | |
| 2.5 | 52.8 | |
| 2.5 | 46.0 | |
| 2.5 | 35.0 | |
| 2.6 | 35.0 | |
| 2.8 | 34.0 | |
| 3.0 | 35.0 | |
| 3.0 | 35.0 | |
| 3.1 | 52.8 | |
| 3.1 | 48.0 | |
| 3.1 | 46.0 | |
| 3.3 | 49.2 | |
| 3.3 | 34.0 | |
| 3.4 | 46.0 | |
| 3.4 | 35.0 | |
| 3.5 | 34.0 | |
| 3.7 | 35.0 | |
| 3.8 | 50.8 | |
| 4.0 | 35.0 | |
| 4.0 | 40.0 | |
| 4.1 | 46.0 | |
| 4.1 | 35.0 | |
| 4.3 | 35.0 | |
| 4.3 | 52.0 | |
| 4.3 | 38.0 | |
| 4.4 | 35.0 | |
| 4.4 | 46.0 | |
| 4.5 | 48.0 | |
| 4.5 | 52.0 | |
| 4.7 | 35.0 | |
| 4.7 | 52.8 | |
| 5.2 | 48.0 | |
| 5.2 | 48.0 | |
| 5.4 | 48.0 | |
| 5.6 | 52.0 | |
| 5.6 | 48.0 | |
| 5.9 | 52.0 | |
| 6.2 | 50.0 | |
| 6.3 | 48.0 | |
| 6.9 | 52.0 | |
| 6.9 | 46.0 | |
| 7.0 | 52.0 | |
| 7.5 | 42.0 | |
| 8.4 | 38.0 | 46.1 |
Note: Each dot shows the real GDP growth rate for a particular year and the statutory corporate tax rate from the previous year. The line describes the relation between the two variables.
Source: Author's analysis of Bureau of Economic Analysis National Income and Product Accounts data (Table 1.1.1) and Internal Revenue Service Historical Table 24