30 major U.S. public companies paid no federal taxes over the past three years

Discussion in 'Economy' started by rdean, Nov 3, 2011.

  1. rdean
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    rdean rddean

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    The report, compiled by an advocacy group, Citizens for Tax Justice and the nonpartisan Institute on Taxation and Economic Policy, examined corporate financial statements from 280 companies on the Fortune 500 list, all of whom were profitable during the 2008-10 period.

    "These 280 corporations received a total of nearly $223 billion in tax subsidies," said Robert McIntyre, director at Citizens for Tax Justice and the report's lead author. "This is wasted money that could have gone to protect Medicare, create jobs and cut the deficit."

    Bay Area firms among 30 not paying federal taxes

    While the statutory tax rate for corporations in the U.S. is 35 percent, the report says companies use legal tax loopholes and move business offshore to evade taxes. As a result, the average tax rate for all 280 companies was 18.5 percent over the last three years. Only 71 of the 280 companies, or about 25 percent, paid more than 30 percent in taxes over the three years, with an average tax rate of 32.3 percent.

    Bottom Line - 30 companies paid 'less than zero' taxes in recent years

    Pepco Holdings Inc, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent, among the 280 Fortune 500 companies studied.

    The statutory U.S. corporate income tax rate is 35 percent, one of the highest in the world; but over the 2008-2010 period, very few of the companies studied paid it, said the report.

    Thirty companies paid no U.S. income tax 2008-2010: report | Reuters

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    Why does this make Republicans giddy with happiness?
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    Rather than chastise corporations, perhaps you should petition Congress to reform the tax code.

    Tell Congress that you think the government should take revenue and capital away from the business entities that spend money to make the money that you want.

    Remind Congress that a taxing event doesn't occur unless and until these corporations actually expend funds for the purpose either aquiring assets needed to generate revenue, or they expend funds related to direct activities for the purpose of selling end product to consumers.
     
    Last edited: Nov 4, 2011
  3. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Bay Area? Who was elected from that area again?
     
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  4. expat_panama
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    expat_panama Silver Member

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    That's crazy. Evading taxes is not legal. Use of legal loopholes is not evading. From the Free Online Dictionary:
    Tax evasion
    An illegal act or practice of not paying one's true tax liability. One may do this directly simply by not paying taxes in a given year. More often, however, the term refers to a person or company hiding assets or income in certain vehicles deemed to be improper by the IRS. It is important to note that tax evasion is different from tax avoidance, which is the minimization of one's tax liability through legal means, though it is generally acknowledged that there is a fine line between the two.​
    .​
    This rant is a typical loony leftist hit piece and reality got dropped off early in the first edit. They may be confused by Obama's Warren Buffett who says he wants more taxes but his Berkshire Hathaway Corp.'s been evading a billion dollars in taxes since 2002.
     
  5. rdean
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    rdean rddean

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    Republicans call this "Good for the Country".
     
  6. uscitizen
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    uscitizen Senior Member

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    How can anyone supporting a consumption tax be against corporate income tax since they are both in reality a consumption tax?
     
  7. martybegan
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    martybegan Gold Member

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    They paid not Federal CORPORATE INCOME taxes, maybe. You have to remember that the final corporate tax bill is often the result of years of negotation due to its complexity.

    Also every corporation pays around 8% in payroll taxes.
     
  8. rdean
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    rdean rddean

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    Maybe?
     
  9. martybegan
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    martybegan Gold Member

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    its because large corporations often enter into negotiations over their final tax bill for a given fiscal year, that can last for years. Once all the debits, credits, etc are figured out, then they pay the bill, and it may be 3 years later. So techincally they didnt pay taxes in fiscal year X, but they paid them in Fiscal year Z.

    This would all be simpler with a flat profits tax of say 10%. No deductions, no nothing.
     
  10. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    So an area that nancy pelosi represents does not pay taxes. Who would have ever thought democrat supporters paid taxes?
     

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