Thirty companies paid no income tax 2008-2010: report

[flacaltenn]

Thirty companies paid no income tax 2008-2010: report - Yahoo! News


And you wonder people are occupying Wall Street.

If Bass 2.0 (or any future release version of Bass X.Y) ever came back to DISCUSS this thread --- I'd have to ask if they were aware that GE (and every other American appliance company) gets $150 in tax credit for EVERY washer/dryer sold. So who's fault is that?

It's a stinkin' GREEN credit just like the $$MILLIONS$$ they pull in catering to the ObamaLama "greenjobs" scam. Who do you think MAKES turbines for wind, and installs pollution control equipment -- GreenPeace???

So it's hard to FIX this problem unless you look at THOUSANDS of special favors that have been cut to perturb free market fairness. EACH subsidy has it's OWN story. And Congress is busy EXPANDING it's influence on American Big Business.. Leaving American Little Business to flounder around trying to survive when their huge competitors are GOVT tit-nursed.

Oh -- you can whine about the tax RATES --- but that would fix exactly NOTHING. So this leftist 'dump and run' is kinda meaningless unless you want to spend a LARGE amount of time trying to interpret the damage that Congress has done over the last 20 years or so...

 

[flacaltenn]

Here's a primer on where to START to unwind all the damage that Congress has wrought. You certainly have to ask WHERE IS THEIR AUTHORITY to do this stuff in the first place..

The Gap Between Statutory and Real Corporate Tax Rates


How they do it
There are myriad reasons why particular corporations paid low taxes. The key major tax-lowering items revealed in the companies' annual reports - plus some that are not disclosed - include:

Accelerated depreciation. The tax laws generally allow companies to write off their capital investments considerably faster than the assets actually wear out. This "accelerated depreciation" is technically a tax deferral, but so long as a company continues to invest, the tax deferral tends to be indefinite. In 2002 and again in 2003, Congress passed and President Bush signed new business tax breaks totaling $175 billion over the 2002-2004 period. These new tax subsidies centered on a huge expansion in accelerated depreciation, coupled with rules making it easier for companies with an excess of tax breaks to get tax rebate checks from the Treasury by applying their excess tax deductions to earlier years and still other new tax subsidies.

Atop the list of accelerated depreciation beneficiaries are SBC Communications, with $5.8 billion in accelerated depreciation tax savings, Verizon (with $4.5 billion), Devon Energy ($4.4 billion), ExxonMobil ($2.9 billion) and Wachovia ($2.8 billion).

Stock options. Most big corporations give their executives and other employees options to buy the company's stock at a favorable price in the future. When those options are exercised, corporations can take a tax deduction for the difference between what the employees pay for the stock and what it is worth. But in reporting profits to shareholders, companies do not treat the effects of stock-option transactions as business expenses - based on the arguable theory that issuing stock at a discount doesn't really reduce profits because the market value of a company's stock often has only a very attenuated relation to earnings.

The corporate tax benefits from stock option write-offs are quite large. Of the 275 corporations, 269 received stock-option tax benefits over the 2001-2003 period, which lowered their taxes by a total of $32 billion over three years. The benefits ranged from as high as $5 billion for Microsoft over the three years to tiny amounts for a few companies.

Overall, tax benefits from stock options cut the average effective corporate tax rate for the 275 companies by 3 percentage points over the 2001-2003 period.

The benefits declined after 2001, however, falling from $13 billion in 2001 to about $9.5 billion a year in 2002 and 2003. The tax-rate effects of stock options are likely to continue to decline as accounting standards are changed to reduce the disparity between the book and tax treatment of options.

Tax credits. The federal tax code also provides tax credits for companies that engage in certain activities - for example, research (on top of allowing immediate expensing of research investments), certain kinds of oil drilling, exporting, hiring low-wage workers, affordable housing and supposedly enhanced coal (alternative fuel). As credits, these directly reduce a company's taxes.

Some credits have unexpected beneficiaries. For instance, Bank of America cut its taxes by $580 million over the 2001-2003 period by purchasing affordable-housing tax credits. Clorox saved $36 million, Kimberly-Clark, $115 million, and Illinois Tool Works, an unspecified amount, from those same credits. Bank of New York obtained $100 million in alternative fuel credits over that period. Marriot International operates four coal-based synthetic fuel facilities solely for the tax benefits, which cut Marriot's taxes by $233 million in 2003 and $159 million in 2002.

Offshore tax sheltering. Over the past decade, corporations and their accounting firms have become increasingly aggressive in seeking ways to shift their profits, on paper, into offshore tax havens, in order to avoid their tax obligations. Some companies have gone so far as to renounce their U.S. "citizenship" and reincorporate in Bermuda or other tax-haven countries to facilitate tax sheltering activity.

Not surprisingly, corporations do not explicitly disclose their abusive tax sheltering in their annual reports. For example, Wachovia's extensive schemes to shelter its U.S. profits from tax are cryptically described in the notes to its annual reports merely as "leasing." It took extensive digging by PBS's Frontline researchers to discover that Wachovia's tax shelter involved pretending to own and lease back municipal assets in Germany, such as sewers and rail tracks, a practice heavily promoted by some accounting firms. Other tax shelter devices, such as abuses of "transfer pricing," also go unspecified in corporate annual reports. Nevertheless, corporate offshore tax sheltering is estimated to cost the U.S. Treasury anywhere from $30 billion to $70 billion a year, and presumably the effects of these shelters are reflected in the bottom-line results of what companies pay in tax.

 

[Seawytch]

http://news.yahoo.com/thirty-companies-paid-no-income-tax-2008-2010-042531293.html


And you wonder people are occupying Wall Street.

This must be why Rick Perry, presidential hopeful, has been talking about closing tax loopholes...

 

[The Rabbi]

Thirty companies paid no income tax 2008-2010: report - Yahoo! News


And you wonder people are occupying Wall Street.

This must be why Rick Perry, presidential hopeful, has been talking about closing tax loopholes...

Actually other candidates have also talked about it. I think Obama has talked about it too.
What is it you have with Rick Perry?

 

[paulitician]

You guys should be occupying Washington instead. GE CEO Jeffrey Immelt this President's "Jobs Czar?" Yikes!

 

[The Rabbi]

You guys should be occupying Washington instead. GE CEO Jeffrey Immelt this President's "Jobs Czar?" Yikes!

It's amazing that Obama has not come in for any blame from the dirtbaggers at all, despite presiding over one of the longest recessions since WW2.

 

[paulitician]

You guys should be occupying Washington instead. GE CEO Jeffrey Immelt this President's "Jobs Czar?" Yikes!

It's amazing that Obama has not come in for any blame from the dirtbaggers at all, despite presiding over one of the longest recessions since WW2.

Yea after Immelt gets done ripping Taxpayers off i heard their Obamy is going to name the WalMart CEO his next "Jobs Czar." It is funny how the Left conveniently ignores this stuff. If they were credible,they would be occupying Washington.

 

[Liability]

OWS is protesting GE's tax breaks?

For real?

Nobody in OWS could possibly say what, exactly, OWS is "protesting."

Personally, I am thrilled to hear that companies paid no taxes.

The corporate tax rate ought to be zero point zero zero percent.

 

[paulitician]

OWS is protesting GE's tax breaks?

For real?

Nobody in OWS could possibly say what, exactly, OWS is "protesting."

Personally, I am thrilled to hear that companies paid no taxes.

The corporate tax rate ought to be zero point zero zero percent.

No they're pretending they don't know GE CEO Jeffrey Immelt is their guy's "Jobs Czar." Just more convenient ignorance from the Left. And yes,our Corporate Tax Rate should be lowered. We currently have just about the highest Corporate Tax Rate in the World. Canada recently lowered their rate and their economy has seen nice improvement. We should have already done this. I guess Politics got in the way though.

 

[Utilitarian]

That may be true in some cases (not all companies have lobby at the federal level), but you're point is valid. So, why aren't you piss enough at the politicians that accepted that big money to write tax code and other laws to the benefit of those companies that you STOP voting for big government central planners? We keep voting into office crony politicians from both parties and then we're surprised when they act like big government central planners.

When government meddles in business, there will ALWAYS be those ready to contribute to re-election campaigns in exchange for a favor. When government lives within the confines of the Constitution, there is no ability for politicians to meddle outside of a few enumerated powers. Crony problem solved. Tax inequity problem solved.

Who says I'm not pissed?

But with one measily little vote each, we are powerless against the big money interests that can fork over thou$ands to get politicians to see things their way.

While I don't fall in lockstep with everything the Tea Party stands for, they sure have proved that 'one measly little vote', can make a huge difference. Unions can make the same claim. I don't know how you vote, but if it's for establishment Ds or Rs and you really do want to stop the cronyism, you're voting for the wrong guys.

The point is that we will NEVER stop companies operating within the law in such a way that is of benefit to that company's shareholders. We have a shot at stopping the politicians that would give favors to those companies by supporting limited government leaning candidates. Now is the time.

I think the Tea Party just proved that astroturfing is an effective way to push an agenda.

The same could be applied to OWS somewhat as well.

A lot of so-called grassroots efforts are just special interest groups that hire people to protest. It's not hard to see why either... In an environment where jobs are hard to come by, you could make a career out of astroturfing.

 

[Utilitarian]

OWS is protesting GE's tax breaks?

For real?

Nobody in OWS could possibly say what, exactly, OWS is "protesting."

Personally, I am thrilled to hear that companies paid no taxes.

The corporate tax rate ought to be zero point zero zero percent.

Well, it is in Somalia.

 

[Liability]

OWS is protesting GE's tax breaks?

For real?

Nobody in OWS could possibly say what, exactly, OWS is "protesting."

Personally, I am thrilled to hear that companies paid no taxes.

The corporate tax rate ought to be zero point zero zero percent.

Well, it is in Somalia.

No. Tax rate. Not gross income.

Somalia has a very failed government and essentially cannot collect taxes.

But who the fuck wants to live in Somalia, much less "do business" there?

 

[Utilitarian]

Nobody in OWS could possibly say what, exactly, OWS is "protesting."

Personally, I am thrilled to hear that companies paid no taxes.

The corporate tax rate ought to be zero point zero zero percent.

Well, it is in Somalia.

No. Tax rate. Not gross income.

Somalia has a very failed government and essentially cannot collect taxes.

But who the fuck wants to live in Somalia, much less "do business" there?

It's pretty close to zero in multiple developing countries.

Among OECD countries, Ireland has a pretty low rate. It's about 12.5%.

Corporation tax rates around the world. How much do companies pay? | News | guardian.co.uk

Ireland has a rather high sales tax though.

 

[Liability]

Well, it is in Somalia.

No. Tax rate. Not gross income.

Somalia has a very failed government and essentially cannot collect taxes.

But who the fuck wants to live in Somalia, much less "do business" there?

It's pretty close to zero in multiple developing countries.

Among OECD countries, Ireland has a pretty low rate. It's about 12.5%.

Corporation tax rates around the world. How much do companies pay? | News | guardian.co.uk

Ireland has a rather high sales tax though.

Somalia is not a developing country. It has already failed.

And their corporate tax rate has no real bearing on what our corporate tax rate ought to be.

It ought to be zero.

 

[eflatminor]

Who says I'm not pissed?

But with one measily little vote each, we are powerless against the big money interests that can fork over thou$ands to get politicians to see things their way.

While I don't fall in lockstep with everything the Tea Party stands for, they sure have proved that 'one measly little vote', can make a huge difference. Unions can make the same claim. I don't know how you vote, but if it's for establishment Ds or Rs and you really do want to stop the cronyism, you're voting for the wrong guys.

The point is that we will NEVER stop companies operating within the law in such a way that is of benefit to that company's shareholders. We have a shot at stopping the politicians that would give favors to those companies by supporting limited government leaning candidates. Now is the time.

I think the Tea Party just proved that astroturfing is an effective way to push an agenda.

The same could be applied to OWS somewhat as well.

A lot of so-called grassroots efforts are just special interest groups that hire people to protest. It's not hard to see why either... In an environment where jobs are hard to come by, you could make a career out of astroturfing.

I've personally attended dozens of Tea Party events...no one paid me to go nor any of the friends and neighbors I regularly went with. I've also been to the OWS protests...again, nobody paid me for that either. I have no evidence OWS or the TP is 'astroturfing'. Do you, other than someone the spewed forth from Pelosi's pie hole?

 

[LordBrownTrout]

Where were all these protestors three years ago when congress was busy passing a 750billion dollar bailout to the banks? Where was the rage then?

 

[kiwiman127]

So we have thirty companies that paid no taxes and many others that haven't paid taxes on multiple occasions.
And some want these corporations to pay no taxes, period! There are some who don't want the wealthy to pay much either with Cain's 9-9-9 and Perry's 20% flat tax that includes no tax on Capital Gains (which is a majority if the wealthy's income).
The US has a huge problem with it's National Debt, eliminating corporate taxes and severely cutting the taxes of the wealthy would simply decrease vitally needed revenue. But the worshipers of the wealthy and Corporate America have a solution for that,,cutting programs that benefit the Middle Class and the poor! Now, I have no problem with cutting goverment spending, but putting it all on the backs who are already hurting and not asking those who have the capital to not contribute is morally wrong!
During the last thirty years the working class has seen flat wages and this despite a continuous slide in the Corporate Tax rate (plus mega loopholes) and the record low rate on Capital Gains. Since the latest cut in Capital Gains we have seen stagnant hiring with 2.9 million new jobs in the US but also 2.5 millions jobs off-shore.
So we have a Middle Class already stretched to the max, consumer spending which drives our economy by 70% is flat and yet the Middle Class and the poor are supposed to sacrifice and tighten their belts even more. Exactly who is supposed to drive our economy?
Below is a chart of Corporate Tax revenues in conjunction with the GDP and please note the declining tax revenue thanks to loopholes. This downward period includes times when there have been record profits. Yet, wages have remained flat and so has the job market. What hasn't remained flat is the National Debt! Working Americans who make up the largest segment of the American landscape haven't benefited and the country hasn't benefited, but be sure Corporate America and the wealthy elite are riding the wave of prosperity.

 

[The Rabbi]

Maybe because companies haven't been doing so well the last 3 years. There's a recession on, ya know?
So the solution is to tax the shit out of anyone who works hard and makes money?

 

[Utilitarian]

While I don't fall in lockstep with everything the Tea Party stands for, they sure have proved that 'one measly little vote', can make a huge difference. Unions can make the same claim. I don't know how you vote, but if it's for establishment Ds or Rs and you really do want to stop the cronyism, you're voting for the wrong guys.

The point is that we will NEVER stop companies operating within the law in such a way that is of benefit to that company's shareholders. We have a shot at stopping the politicians that would give favors to those companies by supporting limited government leaning candidates. Now is the time.

I think the Tea Party just proved that astroturfing is an effective way to push an agenda.

The same could be applied to OWS somewhat as well.

A lot of so-called grassroots efforts are just special interest groups that hire people to protest. It's not hard to see why either... In an environment where jobs are hard to come by, you could make a career out of astroturfing.

I've personally attended dozens of Tea Party events...no one paid me to go nor any of the friends and neighbors I regularly went with. I've also been to the OWS protests...again, nobody paid me for that either. I have no evidence OWS or the TP is 'astroturfing'. Do you, other than someone the spewed forth from Pelosi's pie hole?

I guess you've never heard of the Koch brothers.

 

[Utilitarian]

Where were all these protestors three years ago when congress was busy passing a 750billion dollar bailout to the banks? Where was the rage then?

Good question...