Introduction The economical politics in the society allows making people’s life better. The question of economical politics is put sharply in the business sector. Different programs and economical reforms are provided with the aim to improve the economical position of the whole country and at the same time not to make people dependent from the changes and not to make their life worse. The economy of the country depends on a lot of factors, and the taxation is one of the main incomes of the state from the citizens of the country. There have been a lot of ideas and offers about the change of taxation policy in order to improve business positions and to make the taxation system applicable for both sides. The article under consideration “The Political Economy of Corporate Taxation” by John T. Williams and Brian K. Collins dwells upon the problem of taxation and the ways how this policy can be influenced and improved. The article offers three propositions about the taxation, which may have a success. The propositions of the taxation rates are as follows, (1) to corporate effective tax rates with the aim to aggregate business interests, (2) to make the taxation effective by shock tax rate, and (3) to corporate effective tax rates with the aim to make real income and real investment exogenous. The main method of the investigation in the paper was the evaluation of the offered propositions by means of “exogeneity tests and the moving average representation from several vector autoregressions” (Williams & Collins 208). Discussion Before considering the three offered propositions, the article dwells upon the business power and the rate of its influence on public. The article argues that the recent understanding of business is mischaracterized in some way. This mischaracterization leads to the misunderstanding in the conceptions of business and in the roles which it plays. The first problem, which is raised in the article, is the misunderstanding of the definition of business in general. Business is often understood as the collection of firms, but this is not exactly so. Business is not just the collection of firms, all the participants of the business process are also included, such as managers of the firms, colleges, owners of the firms and partners. One more problem with the literature about business is that it makes wrong understanding of the time inconsistent policies. The literature gives the information that time inconsistent policies are the subject of business influence, what is not really so. Time inconsistent policy means that government has no power to influence the private sector expectation plans, and when the problems appear, government should focus its attention on the policy solutions, but not on the optimizing them. The example of the policy, which is unable to be optimized by government, is the corporate tax policy. At the same time, aggregate effective corporate tax rates are not influenced by the business directly. The idea is that the change of effective corporate tax rates just motivates business, but at the same time it does not affect the aggregate effective corporate tax rate. The statistical analysis, which was provided by the authors of the article, it became understandable t