Corporate taxes hurt workers' wages, says new report.

• Position: CORPORATE TAX - Report - Brief article

A new report by the Tax Foundation shows that the burden of corporate income taxes is likely borne by workers--not investors.

The report, Tax Foundation Special Report No. 169, The Corporate Income Tax and Workers' Wages: New Evidence from the 50 States, by Senior Fellow Robert Carroll, Ph.D., finds that states with high corporate incomes taxes have likely depressed their workers' wages over the long term, while states with low corporate taxes have boosted worker productivity and real wages.

The study found that for every $1 rise in state and local corporate tax collections, real wages fall by $2.50 five years later. The reverse is also true: Wages rise $2.50 for every $1 reduction in state and local corporate income taxes.

Carroll, said that: "These findings are not only consistent with a growing body of research on international corporate income taxes and wages, but they get to the heart of a longstanding political argument on business taxation."

Further, he added, "Raiding corporate...