Most Corporations Avoid Paying Taxes

Discussion in 'Politics' started by Truthseeker420, Apr 14, 2011.

  1. Truthseeker420
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    Truthseeker420 Gold Member

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    Most firms pay no income taxes - Congress
    Study finds that the majority of domestic and foreign corporations in the United States avoid paying federal income taxes.



    NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

    The Government Accountability Office (GAO) examined samples of corporate tax returns filed between 1998 and 2005. In that time period, an annual average of 1.3 million U.S. companies and 39,000 foreign companies doing business in the United States paid no income taxes - despite having a combined $2.5 trillion in revenue.

    The study showed that 28% of foreign companies and 25% of U.S. corporations with more than $250 million in assets or $50 million in sales paid no federal income taxes in 2005. Those companies totaled a combined $372 billion in sales for the largest foreign companies and $1.1 trillion in revenue for the biggest U.S. companies.

    The GAO report, which did not name any specific companies, said that some corporations reported zero income before deducting expenses while others said they had zero net income after deducting expenses. Either way, those companies reported no tax liability, the GAO said.

    But many of the companies the report found had paid no tax were likely small businesses that pay other taxes. Generally, many small firms, because they do not have shareholders, are able to shift corporate income to individual income.

    "Small businesses that are going to be liable for a lot of income tax are likely to use other tax forms so they only pay individual income taxes," said Eric Toder, a senior fellow at the Tax Policy Center.

    The study was requested by Sens. Byron Dorgan, D-N.D, and Carl Levin, D-Mich., in an attempt to determine if corporations are abusing so-called transfer prices.

    Transfer prices are charges on transactions between subsidiary companies within a larger corporate group. Companies may try to lessen their U.S. tax hit by improperly transferring income to foreign subsidiaries in countries with lower rates.

    The GAO study did not attempt to determine if companies were abusing transfer prices, but it said that potential abuse of transfers could reduce the amount of taxes companies pay in the United States.

    "The tax system that allows this wholesale tax avoidance is an embarrassment and unfair to hardworking Americans who pay their fair share of taxes," Dorgan said in a statement.

    U.S. politicians disagree about how much income tax the government should levy on corporations. Currently the rate is 35%, but most foreign governments have set their rates below the U.S. level.

    "The U.S. corporate tax rate stayed the same while foreign countries have drifted down, which increases the incentive for companies to report income in other countries," said Toder. "If the U.S. drops the rate to 30% but closes other tax loopholes, that may ultimately generate more tax revenue for the government."

    Majority of corporations avoid federal income taxes - study - Aug. 12, 2008
     
  2. slukasiewski
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    slukasiewski BANNED

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    Corporations pay taxes?
    I thought people did.
     
  3. Robert
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    Robert Really nice Guy

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    Sure go ahead and remove deductions for hiring new employee's lets see whats happens to unemployment. Let's remove deductions for your healthcare LOL think it cost a bunch now you haven't seen anything yet. Lets remove deductions for increasing or upgrading facility's remember that past unemployment number.

    What's funny is how the left who have very little understanding of creating or maintaining a business cry about deductions that allow them to have a job. But at the same time say NOTHING about an out of control federal government.
     
  4. washamericom
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    washamericom Gold Member

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    i've been dying to pay more taxes... but no one's asked me.
     
  5. Truthseeker420
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    Truthseeker420 Gold Member

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    didn't you read the article Corporations are not paying taxes. yes people pay taxes...well the middle class anyways.
     
  6. slukasiewski
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    slukasiewski BANNED

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    Psssssst....

    The wealthiest 1 percent of the population earn 19 per*cent of the income but pay 37 percent of the income tax. The top 10 percent pay 68 percent of the tab. Meanwhile, the bottom 50 percent—those below the median income level—now earn 13 percent of the income but pay just 3 percent of the taxes.

    Better now, dumb fuck?
     
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  7. Truthseeker420
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    Truthseeker420 Gold Member

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    lol you think corporations hire people based on tax codes. They hire on production needs. If it takes a 100 workers to make a 1000 widgets thats how many workers they will have.
     
  8. Robert
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    Robert Really nice Guy

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    :clap2: LOL You are absolutely clueless on how Business work those same 1000 widgets can also be made by 70 workers instead of 100 and with no incentive to hire more the business will save money in the process.
     
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  9. Truthseeker420
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    Truthseeker420 Gold Member

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    Why do Fox News watchers always start out with insults like it makes their argument any more plausible? or do they think it intimidates someone?

    Corporations will always try and keep production staff to a minimum and the only way they hire is if there is demand. That is economics 101.
     
  10. slukasiewski
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    slukasiewski BANNED

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    You are one raging fucking idiot.

    Seriously...
     

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