MOST Corporations pay NO US Income Taxes

Discussion in 'Congress' started by BlackAsCoal, Oct 15, 2008.

  1. BlackAsCoal
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    BlackAsCoal Gold Member

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    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.

    ---

    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.
     
  2. bigdaddygtr
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    bigdaddygtr Senior Member

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    I'm so shocked I don't know what to do with myself:eek: The rich avoiding to pay taxes:confused:
     
  3. WillowTree
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    WillowTree Diamond Member

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    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.
     
  4. WillowTree
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    WillowTree Diamond Member

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    very dumb statement. It's the poor who pay no federal taxes.
     
  5. Andrew2382
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    Andrew2382 Gold Member

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    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
     
  6. Bern80
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    Bern80 Gold Member

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

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    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...
     
  8. bigdaddygtr
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    bigdaddygtr Senior Member

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    Look, you like Reagan so we'll NEVER agree.
     
  9. editec
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    editec Mr. Forgot-it-All

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    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.
     
  10. Skull Pilot
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    Skull Pilot Platinum Member

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    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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