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Most US corporations pay no taxes

Discussion in 'Business & Economics' started by Stalin, Aug 15, 2008.

  1. Stalin

    Stalin Active Member

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    "...A study released Tuesday by the Government Accountability Office (GAO) reveals that the majority of corporations pay no federal taxes on profits accrued through business conducted within the US.

    From 1998-2005, the period covered by the survey, about two thirds of both domestic and international businesses paid no federal taxes, while about one quarter of large US corporations, defined as those with over $250 million in assets and at least $50 million in sales, had no tax liability.

    While it failed to name the ways specific corporations avoided taxes, the GAO survey, based on Internal Revenue Service records, attributes the failure to three factors: tax credits, operating losses and “transfer pricing,” which means corporations internally shift taxable profits to their own subsidiaries in lower-tax nations.

    Both Senators John McCain and Barack Obama have proposed lowering the top-end US corporate tax rate if elected. At least on paper, it is possible for extremely profitable corporations to be taxed as much as 35 percent of their profits in the US, a higher top-end corporate tax rate than prevails in most other advanced industrial OECD (Organization for Economic Cooperation and Development) nations, although the US top-end income tax rate for extremely wealthy individuals is among the lowest.

    more corporate welfare at http://www.wsws.org/articles/2008/aug2008/ctax-a15.shtml

    from Comrade Stalin - The Original Georgian Politician
     
  2. Libsmasher

    Libsmasher New Member

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    (Go to the tax foundation site to click on the expanded report links)

    http://www.taxfoundation.org/
     
  3. PLC1

    PLC1 Moderator Staff Member

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    A well run corporation should pay no taxes. Think about it:

    Any money that the corporation makes should either be used to run the business (tax deductible), or paid to the shareholders (also tax deductible.) There shouldn't be anything left for that non person we call a corporation to keep and pay taxes on. What is the corporation to do with its profits if not pay shareholders and invest in its business?

    The shareholders, of course, do pay taxes on the dividends. Were the corporation to also pay taxes on the same money, that would be double taxation.
     
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