hey, how does tax work in us... i mean at corporate level...
If i have lets say 100,000,000 bucks, I hear federal tax is 35%
that means that i take away from the 100M the 35% and from that number then State tax snatch some then any other minor regional tax like county one???
or those taxes arent compose, so everyone calculates their snatchs from 100M in general????
Lets say that the corporation has 100M of profit (not bucks because that just makes things complicated without knowing the expenses).
Then the corporation would pay estimated state taxes on the 100M. Lets just pretend the corporation was in Oklahoma (since corporate taxes are easy to calculate there) and thus must pay 6% state tax. The corporation would pay 6% of $100M = $6M of state corporate income tax.
The company is left with $94M of profit after state taxes. The federal income tax for corporations is right around 35%. So, the corporation would pay 35% of $94M = $33M. The corporation would be left with $61M of profit to do whatever it wants to do with.
If the corporation decides to give that money to the shareholders, then most shareholders will likely pay federal and state dividend tax (unless it was in a retirement account). It is 15% federal tax on that dividend in most cases (down as low as 5% if you otherwise have a low income). Suppose Pelu that you are the only shareholder. In that case, you'll get $61M of income and you'd pay $9M of federal axes. You'd also pay 6.75% state tax on that $61M, which is $4M. You'd net $48M which is just about half of the original $100M profit.
Of course, this is almost the worst case scenario, where you have no other deductions or other ways to offset the tax burden. About half of all corporations pay no taxes at all (even profitable Fortune 500 companies). They build up years of deductions, offsets, depreciations, etc to make certain that they don't have taxes to pay.