Friday, October 25, 2013

Big Profits, No Taxes: Nice Gig If You Can Get It

Red, White, and Büllshït

Time to revisit this issue with this flashback to 2008 and this headline:  “Most U.S. Corporations Pay No Income Tax” which was posted from the NY Times. Highlights follow:

“Two out of every three United States corporations paid no federal income taxes from 1998 through 2005, according to a report released by the Government Accountability Office (GAO), the investigative arm of Congress.”

“The study is likely to add to a growing debate among politicians and policy experts over the contribution of businesses to Treasury coffers. The study did not identify the corporations or analyze why they had paid no taxes. It also did not say whether they had been operating properly within the tax code or illegally evading it.”

“The study covers 1.3 million corporations of all sizes, most of them small, with a collective $2.5 trillion in sales. It includes foreign corporations that do business in the United States.”

Story continues at the link above.

This update is from the NY Times in 2011.  A few details:

“Topping out at 35 percent, America’s official corporate income tax rate trails that of only Japan, at 39.5 percent, which has said it plans to lower its rate. It is nearly triple Ireland’s and 10 percentage points higher than in Denmark, Austria or China. To help companies here stay competitive, many executives say, Congress should lower it.”

“But by taking advantage of myriad breaks and loopholes that other countries generally do not offer, United States corporations pay only slightly more on average than their counterparts in other industrial countries. And some American corporations use aggressive strategies to pay less — often far less — than their competitors abroad and at home.” Continue reading the story at the link. 

Now, comes this update, some 5 years from the original post above from Think Progress


“Among companies listed on the S&P 500, almost one in nine paid an effective tax rate of zero percent — or even lower — over the past year, according to an analysis by USA Today.”

“There are 57 separate companies listed on the index that paid a zero percent rate from the past year. Those companies include both household names like Verizon and News Corp. and lesser-known corporate giants like the data storage manufacturer Seagate (market value $15.9 billion) and Public Storage (market value $29.5 billion).”

“Many of the companies USA Today identified in its analysis as paying negative rates make the list because they lost money, but several were profitable. Previous analyses have shown that the typical corporation pays a lower effective tax rate than most middle-class families, and a far lower one than the statutory corporate tax rate against which business interests disingenuously rail.”

Story continues at the link.

Nice gig if you can get it.

No comments: