Yet another false Reaganesque "free market" trickle-down theory exposed

Study says most corporations pay no U.S. income taxes

excerpt --

WASHINGTON (Reuters) - Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

More than half of foreign companies and about 42 percent of U.S. companies paid no U.S. income taxes for two or more years in that period, the report said.

During that time corporate sales in the United States totaled $2.5 trillion, according to Democratic Sens. Carl Levin of Michigan and Byron Dorgan of North Dakota, who requested the GAO study.

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Dorgan in a statement called the report "a shocking indictment of the current tax system." Levin said it made clear that "too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States."

Study says most corporations pay no U.S. income taxes | U.S. | Reuters

It appears there is sound evidence and reason for Obama to seek ways to close the loopholes corporations are using to defraud the American people.

The question is .. will he do it.

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It is "society" which provides man with food, clothing, a home, the tools of work, language, the forms of thought, and most of the content of thought; his life is made possible through the labor and the accomplishments of the many millions past and present who are all hidden behind the small word "society."
-- Albert Einstein: Why Socialism

I'm so shocked I don't know what to do with myself The rich avoiding to pay taxes

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Its one thing to be an idiot, its a whole different thing to open your mouth and prove it to the rest of the world

Common sense should tell you it won't work out that way. Obama taxes corporations, corporations pass on tax to consumers. Corporations still pay no taxes. Be realistic that's the way it will go down.

very dumb statement. It's the poor who pay no federal taxes.

Over the last three years, Exxon Mobil has paid an average of $27 billion annually in taxes. That's $27,000,000,000 per year, a number so large it's hard to comprehend. Here's one way to put Exxon's taxes into perspective.

According to IRS data for 2004, the most recent year available:

Total number of tax returns: 130 million

Number of Tax Returns for the Bottom 50%: 65 million

Adjusted Gross Income for the Bottom 50%: $922 billion

Total Income Tax Paid by the Bottom 50%: $27.4 billion


Conclusion: In other words, just one corporation (Exxon Mobil) pays as much in taxes ($27 billion) annually as the entire bottom 50% of individual taxpayers, which is 65,000,000 people! Further, the tax rate for the bottom 50% is only 3% of adjusted gross income ($27.4 billion / $922 billion), and the tax rate for Exxon was 41% in 2006 ($67.4 billion in taxable income, $27.9 billion in taxes).

Exxon's 2007 Tax Bill: $30 Billion - Seeking Alpha

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These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.” - Barney Frank

And yet they still manage to povide about 80% of the tax revenue. Equally shocking, huh?

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It's time for another Ronny in the White House.

There is no doubt that the complex tax system is a joke and is in need of repair... I don't think you will get much argument from anyone on that....

I'm one who is a proponent of a flax tax based system with the closing of loopholes, elimination of most deductions, and a basis on (minimum wage X 40 X 50 weeks work a year) as the zero line for taxes... thus eliminating the complexity, reducing the needed size of the IRS and hence saving government expenditures.. and a similar system for corporate taxes as well...

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Socialism will only work with a society of prisoners, slaves, and robots who can be controlled by the ruling elite (which will always exist in that type of system).

Join the ban bobo brigade! Join the ban kirk company. Just say no to trolls.

And for the idiotic statement of the month...

Look, you like Reagan so we'll NEVER agree.

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Its one thing to be an idiot, its a whole different thing to open your mouth and prove it to the rest of the world

That's the thing about common sense.

It is commonly senseless.

They cannot pass the taxes onto the consumers because they pay taxes on the profits after the consumer is no longer part of the model.

Now, if they want to recoup the money they paid in corporate taxes next year, they can charge their customers more for their products.

But THEN, they will pay still more taxes on the higher profits they made from their now higher priced goods, in that next taxable year, and therefore they will pay still more taxes on those increased profits.

Common sense...don't leave B-school without it.

Corporations pay no taxes because all of their profits were either paid out to shareholders or reinvested into the company there fore no income (profit) was realized by the corporation.

What is so hard to understand about that?

You should be glad that corps. didn't pay income tax because the individual rates of all those people who received dividends or higher salaries are higher than the corporate tax rate so the government got MORE tax dollars not less.

So what would you rather have a corporation that doesn't hire some more people so they can pay taxes or a corporation that pays out its profits to expand, hire people and pay more salaries and those people pay more taxes?

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"If you want the government to give you puppies and rainbows, don't pout when you're picking up dog shit in the rain"
--Skull Pilot


...being permitted to vote for politicians who enact unjust, oppressive new laws magically converts the stripes on prison shirts into emblems of freedom.
--James Bovard

It is not the function of our Government to keep the citizen from falling into error; it is the function of the citizen to keep the Government from falling into error.
-- U.S. Supreme Court, in American Communications Association v. Douds, 339 U.S. 382,442

Always and never are two words you should always remember never to use.
- Wendell Johnson

I do not believe in the collective wisdom of individual ignorance.
-- Thomas Carlyle

You deduced this from where exactley? It is also irrelevant to what I said. What I said isn't open to debate. Corproate America and the rich supply the vast majority of the tax revenues for the country.

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It's time for another Ronny in the White House.

This is what you call common sense? This only works if you assume their profits are going to increase due to their increase in price, which definately not a given since increase in price reduces demand.

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It's time for another Ronny in the White House.

I deduced that from your sig " Its time for another Ronny in the white house."

Please, read my sig cause it obviously applies to you

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Its one thing to be an idiot, its a whole different thing to open your mouth and prove it to the rest of the world

I want to add to this. Since S corporations are the most prevalent type of corp in the country, and sub-chapter S corporations by definition pay no corporate tax, then of course most US corps pay no corporate income tax. this is just another Dimocrat red herring to support their tax the rich evil corporation mantra

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"If you want the government to give you puppies and rainbows, don't pout when you're picking up dog shit in the rain"
--Skull Pilot


...being permitted to vote for politicians who enact unjust, oppressive new laws magically converts the stripes on prison shirts into emblems of freedom.
--James Bovard

It is not the function of our Government to keep the citizen from falling into error; it is the function of the citizen to keep the Government from falling into error.
-- U.S. Supreme Court, in American Communications Association v. Douds, 339 U.S. 382,442

Always and never are two words you should always remember never to use.
- Wendell Johnson

I do not believe in the collective wisdom of individual ignorance.
-- Thomas Carlyle

Coudn't possibly be a another Ronny could it?

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It's time for another Ronny in the White House.