Figure 21
The tax incentives driving reorganization: Average tax rate, by entity type
| Entity type | Average tax rate | Dividend taxes paid on distributions to owners |
|---|---|---|
| Sole proprietorships | 13.6% | |
| Partnerships | 15.9% | |
| S-Corporations | 25.0% | |
| C-Corporations* | 22.7% | 8.9% |
* The average tax rate on C-Corporations includes both the corporate tax (bottom segment of the bar) as well as dividend taxes paid on distributions to owners (top of the bar).
Source: ATF and EPI analysis of Cooper et al. (2015, 37)
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