Most US Companies avoid paying income tax

[sealybobo]

Unlike the rest of us, most U.S. corporations and foreign companies doing business in the United States pay no federal income tax, according to a new report from Congress. The study by the Government Accountability Office, expected to be released Tuesday, said two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, and about 68 percent of foreign companies doing business in the U.S. avoided corporate taxes over the same period.


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[sealybobo]

where's gunny, allie, charles, jreeves? All the people who think Corporations already pay too much in taxes. HA!!!

 

[CA95380]

Yeah, saw this on the news earlier.

Lot's of kickbackin' going on!

 

[Care4all]

wow!

 

[chopcrazy]

where's gunny, allie, charles, jreeves? All the people who think Corporations already pay too much in taxes. HA!!!

What is even more funny, is that the report does not say how many companies made a profit to pay the tax and avoided it through credits or other means. Nor did the report say how many of the companies were S-corps and the federal tax would than be paid on personal income tax.

The company I work for does not pay income tax because we lose money. We have a high depreciation and interest expense which results in a net loss for us.

Maybe this is a point for going towards a flat tax or national sales tax.

 

[sealybobo]

wow!

Keep in mind this is during the time they said that Companies couldn't afford to do business in America because they are being overtaxed.

And McCain wants to give corporations more tax breaks and make Bush's bullshit tax breaks to the top 1% perminant.

The GOP will lie to us ruthlessly until November. Don't believe a word they say. Just go by how they did for the last 8 years.

 

[sealybobo]

What is even more funny, is that the report does not say how many companies made a profit to pay the tax and avoided it through credits or other means. Nor did the report say how many of the companies were S-corps and the federal tax would than be paid on personal income tax.

The company I work for does not pay income tax because we lose money. We have a high depreciation and interest expense which results in a net loss for us.

Maybe this is a point for going towards a flat tax or national sales tax.

I'm no expert to even go there. All I know is I hear people telling me how much the oil companies pay in taxes. I bet they don't pay shit when it is all said and done.

The GOP passed all sorts of pro corporation laws from 2000-2006. Giving tax breaks for companies going overseas, letting companies tap into their pension funds, etc. So much has happened, I forgot probably 80% of what they did. But it all lead up to where we are now.

If we don't run them out of office, they will continue to favor corporations over labor and we will continue to shoulder way too much of the tax burden.

The rich pay a lot in taxes? BOO FREAKIN HOO!!! So do I. So who should get a break, me or the rich? Me!!!!

 

[RetiredGySgt]

8 billion from the Oil Companies on the Gulf coast/East Coast oil and gas wells. Ya they don't pay anything.

Further if a company LOSES money what exactly would their tax burden be?

 

[editec]

I run a corporation which doesn't pay any taxes.

I must have mislaid my secret Swis bank account book, though cause we barely have a pot to piss in or a window to throuw it out of.

These bumper sticker headlines are dazzling starting points for discussion, but they're often quite misleading, too.

Most corporations in America are subchapter 8 small businesses.

When you take out their real cost of doing business, many of these folks are making piss-all in profits.

 

[Ravi]

But

According to the report:

The GAO said corporations escaped paying federal income taxes for a variety of reasons including operating losses, tax credits and an ability to use transactions within the company to shift income to low tax countries.

Shifting income to low tax countries?

About 25 percent of the largest U.S. companies paid no federal income taxes in 2005 despite $1.1 trillion in gross sales that year, they said.

I have a hard time believing 25% of our largest companies are S-corps.

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

 

[sealybobo]

8 billion from the Oil Companies on the Gulf coast/East Coast oil and gas wells. Ya they don't pay anything.

Further if a company LOSES money what exactly would their tax burden be?

So you want to privatize the profits and socialize the losses?

 

[KGB]

So you want to privatize the profits and socialize the losses?

I think under your equation, it would be socialize the profits & privatize the losses.....

 

[sealybobo]

I think under your equation, it would be socialize the profits & privatize the losses.....

Anyways, now you know that you are full of shit. Corporations are not paying their fair share of taxes. They can show you all their fuzzy math, but in the end, Corporations are not paying enough in taxes. That means you are shouldering more of the burden, dummy.

 

[chopcrazy]

What is even more funny, is that the report does not say how many companies made a profit to pay the tax and avoided it through credits or other means. Nor did the report say how many of the companies were S-corps and the federal tax would than be paid on personal income tax.

The company I work for does not pay income tax because we lose money. We have a high depreciation and interest expense which results in a net loss for us.

Maybe this is a point for going towards a flat tax or national sales tax.

here is some further stats for those that like some data instead of words ('census.gov/csd/susb/2005/usst05.xls')

Basically, about 92% of firms and establishments have less than 500 people and comprise half of the employment. Only 8% comprise Firms and establishments that have 500+ people and make up half of the employement. There were roughly 13.5 million firms and establishments in the data. this is to give perspective when you see that two-thirds don't pay
federal income tax as a company. When you think of a corporation, are you thinking of one that has 10,000+ employees or one that has 50 employees?

As you looked through Exxon's 10-Q, you probably noticed that Exxon paid 19.8 billion in taxes or 46.8% of income before taxes which is up from the 14.5 Billion or 42.5% of income before taxes that was paid in 2007 through the first six months.

What tax breaks did exxon have that resulted in an increase in the percent of taxes to be paid?

Your point about who should get the tax break "me" is valid for almost everyone. Almost everyone would want to have a tax break. When you vote, you vote what is best for you. If someone promises to give a tax break to you, you more than likely will vote for it.

 

[KGB]

Anyways, now you know that you are full of shit. Corporations are not paying their fair share of taxes. They can show you all their fuzzy math, but in the end, Corporations are not paying enough in taxes. That means you are shouldering more of the burden, dummy.

hey dumbass, if you raise corporate taxes, guess who they pass the cost to? That's right, you & I.....so our tax burden would increase.....you liberals can be so stupid when it comes to economics & taxation.....

 

[DiamondDave]

Anyways, now you know that you are full of shit. Corporations are not paying their fair share of taxes. They can show you all their fuzzy math, but in the end, Corporations are not paying enough in taxes. That means you are shouldering more of the burden, dummy.

Yeah... damn those oil companies for only paying 2.5 times their profits in taxes... it should be MORE

The corporations pay a crapload of taxes....

And it is ridiculous to hear you screaming about 'fair' share... all the while promoting a punishment system of taxation to be used for wealth redistribution, instead of a fair, equal burden% tax system

And for those who are trying to base corporate taxation on sales stats... you have to realize that even with a billion dollars in sales, the company could be running at a loss... and on top of that, thru business transactions, purchases, etc, that corporation running at a loss is still paying into the tax system

 

[sealybobo]

hey dumbass, if you raise corporate taxes, guess who they pass the cost to? That's right, you & I.....so our tax burden would increase.....you liberals can be so stupid when it comes to economics & taxation.....

Look at what your party has done to the economy and say we are stupid.

Thank you for Econ 101 retard. So is the solution that Corporations should never pay taxes because if we tax them, they'll just pass on the costs to us consumers? Well then don't buy their fucking products. Then they'll lower their prices to a level that you can afford.

What is it that you just have to have that you will pay whatever they ask? Dildo's?

You guys are funny. Income tax started out as being something companies paid. It is unconstitutional to tax individuals income. Yet somehow they convinced you that it is not good to tax the corporations and it is patriotic to pay income tax. They won. We lost. We can't win with guys like you on our team.

 

[Care4all]

hey dumbass, if you raise corporate taxes, guess who they pass the cost to? That's right, you & I.....so our tax burden would increase.....you liberals can be so stupid when it comes to economics & taxation.....

if they pay less of the tax burden, with the over spending of Congress, WE STILL END UP PAYING MORE, no? Either way we are screwed to paying more in taxes imo....?

At one time, Corporate taxes collected were equal to income taxes collected from the people...

I believe that Corporations are down to paying less than 15% of the total tax burden when they were paying 50% of the tax burden, while income tax was the other 50%....?

If their tax burden is reduced then our tax burden is raised, period....

so 6 or 1/2 dozen is the same...we pay more either way....

at least with the Corporate tax, ONLY THOSE buying what the corporation sells is paying higher taxes that the corporation passes along to their customer and not all of us in the USA that do not buy their product....that seems MORE FAIR to me?

 

[Care4all]

Yeah... damn those oil companies for only paying 2.5 times their profits in taxes... it should be MORE

The corporations pay a crapload of taxes....

And it is ridiculous to hear you screaming about 'fair' share... all the while promoting a punishment system of taxation to be used for wealth redistribution, instead of a fair, equal burden% tax system

And for those who are trying to base corporate taxation on sales stats... you have to realize that even with a billion dollars in sales, the company could be running at a loss... and on top of that, thru business transactions, purchases, etc, that corporation running at a loss is still paying into the tax system

What do you pay on your personal yearly profit?

Do you get to take all of the same deductions as them for rent, and heat and electric and gasoline to and from and what you purchase daily, to come out with only 10% or your gross income being taxable?

I think not....

Care

 

[KGB]

if they pay less of the tax burden, with the over spending of Congress, WE STILL END UP PAYING MORE, no? Either way we are screwed to paying more in taxes imo....?

At one time, Corporate taxes collected were equal to income taxes collected from the people...

I believe that Corporations are down to paying less than 15% of the total tax burden when they were paying 50% of the tax burden, while income tax was the other 50%....?

If their tax burden is reduced then our tax burden is raised, period....

so 6 or 1/2 dozen is the same...we pay more either way....

at least with the Corporate tax, ONLY THOSE buying what the corporation sells is paying higher taxes that the corporation passes along to their customer and not all of us in the USA that do not buy their product....that seems MORE FAIR to me?

if you start taxing essentials, then this "savings" disappears....