A Peek Inside the Corporate Taxation
From Mona Lease 

This is from Wikipedia. Corporate Taxation is a tax imposed at the Federal level. Most states tax the corporations, too. Some local levels want their share, too. This can apply to estates and trusts, as well. Federal levels are some 15-35%. This is income over $365,000. (Interesting - that's over a $1.000 a week). 

Corporations are also subject to Federal Alternative Minimum Tax AND alternative state taxes. These are "flat rate taxes." There is a chart for these. For Corporations, they pay 20% on the taxable income. After $310,000, there are no more deductions. 

The Capitol Gains Tax is another tax imposed on what a company makes apart from the inventory - stocks, bonds, precious metals, and property. This is another 20% of the taxable income. Also, there is a corresponding state tax for this, too. And, another chart. 

An "S" Corporation elects to be taxed under SubChapter 1 of the IRS Code. They do not pay Federal Income Tax. The Corporation's income or loss is divided among all and passed down to the shareholders, who in turn report the gain or loss on their individual income tax returns. 

All other corporations are considered "C." These include most major companies and some smaller ones. Shareholders are taxed only on their dividends; not the whole company's gain or loss. 

This is a very brief overview, designed to give you a working knowledge of the taxation out there. And that these are different from the personal ones to which we are accustomed to using. Also, there are "extra" taxes out there when you are in the higher income brackets - remember the taxable income here is over $365,000. And, lastly - If a corporation is paying 35% (from the Corporation Tax 15-35% on income over $365,000) and another 20% (Federal Alternative Minimum Tax); then are they paying 55% in taxes? Of course, I could not find a table for the Alternate State Tax. I assume that would vary from one state to another. Again, I hope this clears things up a bit for you.