Corporations are paying even fewer taxes than you thought
By Virginia SmithNovember 3rd, 2011, 2:00 pmComments (69)
Looks like big businesses have it even cushier than you probably already suspected: a new study found that the biggest publicly traded companies in the U.S. pay an average of 18.5 percent in corporate taxes, a far cry from the official corporate tax rate of thirty-five percent.
The study, which came out of the generally liberal Citizens for Tax Justice, looked at the regulatory filings of 280 of the nation's most profitable companies, and found that corporations that took advantages of tax loopholes did so at the expense of those who did not. A quarter of the companies in question paid less than ten percent in taxes, and others, like Wells Fargo, General Electric, and Boeing, seem to have paid nothing at all.
The study's author wrote of the discrepancy:
“Companies that are paying their fair share ought to demand that the tax-dodging companies pay their fair share too. So should the public, which is subsidizing them in terms of increased federal debt... Closing the loopholes will have real benefits, including a fairer tax system, reduced federal budget deficits and more resources to improve our roads, bridges and schools — things that are really important for economic development here in the United States."
Some of the businesses involved have already questioned the study, claiming it failed to include deferred taxes and information from corporate tax returns, which are not available to the public. However, the numbers make it pretty hard to avoid the conclusion that the companies making the most money have ended up paying the lowest tax rates. Expect related Occupy Wall Street signs to start popping up any minute now.
Commentarium (69 Comments)
OWS is scrambling to get themselves tax-exempt status as a non-profit organization. Where's the outrage? Nobody wants to pay taxes and those that can legally find a way to avoid paying them, will. So what if it's large corporations or a bunch of bums camping in NY; if it's being done legally, then shut your whining.
because they ARE a non-profit. Your imagination ≠ everybody wanting to duck taxes, so shut your own whining.
Still, as a non-profit OWS consumes resources. OWS should pay its fair share.
right. If you can legally avoid taxes, you do it. That even applies to the libtard troll.hHe mocks me for stating that people don't want to pay taxes. Okay, jr, you can pay mine for me since that's your deepest desire. What a rube.
Hey, I just said I'd pay my own taxes because I'm also jr! That makes me a "rube" too...
Publius, what resources are you claiming they don't pay taxes on?
non-profit so taxes aren't an issue for them. So now everybody is happy, right? OWS has learned how to play the game. They will get bigger and bigger and whoever has the money will move into offices to run things while they have their grunts out living like hobos. Twenty years from now, these hobos will realize that OWS has become the Golem. They are becoming what they are protesting and are too goddamned stupid or stoned to see it. Let it snow, let it snow, let it snow!
Parks, streets, roads, to name a few, Resources.
They are "consuming" the streets and parks? Sounds like they'll need some serious fiber to go with that. If these people have jobs or buy goods, they are paying taxes. If they are unemployed, they should not pay income tax because they have no income. Do you really have a problem with that concept?
No, streets jump into existence from nothingness and never need maintenance, just like park landscaping, paths, etc :)
Do I have a concept with people not paying income taxes if they have no income? I do not but we're talking a non-profit corporation here, are we not?
that these people have never contributed tax money for streets and parks? If so, where's your proof? Regardless, they are paid by society as a whole for public use, so you have no right to say who deserves to use it. Lastly, OWS is not a corporation.
It's a non-profit which is run like a corporation, Moron.
OWS is not a corporation, Moron.
It's run "like" a corporation, Moron.
Prove that I am a non-profit, Moron.
@OWS- they have applied for, and received, non-profit status by the IRS.
That's good to know, but they will never be run like me. All I care about is my bottom line, no matter who I screw over! Oh, and I'm a "person" with more rights than anyone in here!
You don't consider paying no taxes to be special rights? Corporations that don't pay taxes do so legally. What's the difference between OWS using the system and corporations doing the same? And don't say people getting screwed: most of the screwed people did it to themselves.
Special rights? Tell me how much GE or Exxon paid in taxes this past year. Yeah, I thought so. How about federal subsidies for non-profits? I thought so. Hey, churches get TONS of tax breaks. How about atheist organizations? Yup, thought so. You can't say people screwed themselves when the system was rigged against them. The Teaparty and OWS are both pissed as hell, but for different reasons: It's because our political system is broken and hasn't evolved quick enough.
They pay zero taxes but do so legally. If a company wants federal subsidies, then they should go for the tax exempt non-profit status; it's their choice. Atheist organization can go through the steps to get tax exemption status like churches but don't do it because they don't want to be considered a religion, albeit one that doesn't believe in God. The system isn't rigged against anybody. Anybody who wants to use the system to their advantage can do so. If they don't, it's their choice and that's how they screw themselves. The works is what you make it. Don't be pissed at those that are taking the opportunities that others are willingly passing on.
*shouldn't go for non-profit status.
They pay zero taxes because they have rigged the system to do so: That doesn't make it right, which is why so many people are pissed. Your wrong that atheist organizations can get tax breaks like churches because by definition they are not a religion. If you think atheism is a religion, then you must believe that not collecting stamps is a hobby. It's not about using the system to your advantage, it's about fairness and shared sacrifice.
The system is fair to those who use it. And you didn't read what I said about atheists. They could absolutely get the same status as a church if they desired to do so. That they don't do it is their choice; nobody prevents them from doing it. Actually read my comment before you give rebuttal.
and I don't think it's fair. I'm not alone in that sentiment either. No, atheists can't get the same treatment as a church does. I did read your comment, sir.
Businesses DON'T PAY TAXES and NEVER will!!!!
People pay taxes. Businesses pass on whatever they are "taxed" to customers.
Funny.....mine does.
Get "themselves" exempt status? What "themselves"?Who "themselves"? Garbage comment "," as usual. And no, we don't care about bums not paying taxes, we care about billion dollar corporations renting congress long enough to make not paying taxes legal for themselves. Corporations exist as legal entities because it's to societies advantage to let them. When it isn't to our advantage, we don't need them anymore. When food gets "the-poor-starve" expensive, we won't: please see "French Revolution" and the etymology of "heads will roll".
Ummm... You mean a peaceful, non-violent revolution, right? One that's preferrably gender neutral and doesn't allow smoking?
Of course I do. Violence never ends well for anyone concerned, on either side.
WWII turned out pretty well for the west.
@Gazbo - A "garbage comment" for using the plural when the singular is appropriate? Please.
As to the rest of your comment, please see: "overwrought," "off topic" and "exaggerated."
Next Friday is veteran's day, so Publius, please come and thank my 86 year-old nursing home resident who is still having nightmares 66 years after coming home. I doubt he would appreciate having sacrificed, then having his benefits cut because others aren't paying their share.
referring to they small group that seems to be controlling the raised funds while trying to avoid taxes and avoid having to share with others. There won't be any trickling down of funds; it will all disappear in "administrative costs".. Gazebo, why don't you list all of the large corporations that try to limit the taxes they pay and that you have boycotted. Don't forget subsidiaries. And as long as we're at it, please tell us that you didn't claim any exemptions or deductions on your taxes. I wouldn't want anyone on here to think that you are full of shit or hypocritical.
Pub - war and civil violence, while related , are not the same. As for the grammar correction, you need to brush up your reading skills. And as for "overwrought", you need to use those reading skills to study the history of civil violence. When people get hungry - especially people not used to it - they get nasty very quickly. No Guillotines here I'm sure, but the prospect should worry you and your smug compatriots. I know it doesn't and I know you think your politics are sensible. You're wrong and that's a tragedy.
I'm comma, BTW. Even spell check could save me from "the" being "they"!
do we have to be about a group that probably won't get off their asses and vote?tragedy? Hyperbole much, Gazbo?
Look around and tell me you don't see tragedy in progress.
And who knows WHAT you're on about "punctuation mark" with your pissy little grammar corrections.
I can't type when I'm drunk.
tragedy I see is a generation of people that want accountability for the corporations but not for themselves. Boo to the big bad corporate wolves but don't make us have to pay for our educations or over-extended lives. We want businesses to stop taking but we don't want to stop bitching for free handouts while we smoke our pot and watch our cable tv. We're entitled and that's what's fair. So let's hear it for those that work for minimum wage and bought $300k houses thinking that they were getting something for nothing. When is it supposed to snow in NYC again. Maybe those hippies will start to eat each other.
Inequities are what drive the OWS protests. People don't want handouts. It's not a class uprising and they don't want civil war -- they want just the opposite. They want everyone to live in the same country, and live by the same rules. It's amazing that some people think that that's asking a lot.
same rules, you mean wanting what they haven't earned? I thought that was a big part of them protesting Wall St.
@Prevect - If he's in the area, I'll certainly come by and say thank you. I'm sure he's proud he did his part to fight fascism. Have you ever asked?
How is it that OWS protestors don't want handouts? Virtually every OWS has demanded forgiving student loans. Not a handout to all protestors but certainly one to a large demographic.
@Gazbo - Yeah, I think I'll stay with overwrought. As for civil violence, I can name one mugging that was stopped with violence about three years ago. Turned out well.
rules of logic, I have no idea what OWS is protesting.
I like to make things up as I go along. "Virtually" all the time.
..and conquer. Yup, go ahead plebes, fight against the dirty lazy hippies. And vice versa. Why? To keep us divided and ignorant, of course. Claw each other's eyes out and scramble for what little bits of crumbs are left for you; meanwhile the fuckers in government, lobbyists and elsewhere laugh all the way to the bank.
Alternatively, we could realize despite some differences, we're all on the same fucking side. Hey, I don't always agree with you, but we're BOTH getting screwed. Let's both try to change it. But no, just keep yelling nonsense at each other. My team's better than YOUR team. Red team vs. blue team. It doesn't fucking matter. Wake. Up. OWS, tea party...you should be on the same side. I don't know anymore.
it was that easy. The teabaggers worship the very people who crashed the economy, OWS doesn't: Not so much in common there.
Moron. It was Barney Frank and the Dems that allowed people to buy homes they couldn't afford. It was Obama, another Dem that bailed out the corporations. Stupid , Fu kyats.
Still struggling to understand OWS, comma? You'll never know from watching FOX all day: OWS have no party affiliation. Btw, if you're going to go by "comma" you might want to learn to use one.
I think your name is much better for a person who has horrible spelling and punctuation.
Er, I must be talking to the mirror again. Huh huh.
Looks like comma is too much of a pussy to use his favorite name anymore. Moron.
Er, I must be talking to a mirror again. Huh huh
fyuyck yewh, faggots.
You're such a bigot, Moron.
So riiiight on that one! I'm always riiiight when getting pissy with myself.
Moron, you are such a loooooser. You should just quit. Hiding behind my name is lame of you and none of your comments are worth a damn. You're just Moron and nothing else.
Oh, I can't quit myself, can I? Almost impossible. My own failure is so palpable. I'll just keep insulting myself and claiming I'm not a troll while trolling. That should be effective, riiiight?
exactly! spot on AB, spot on. taxing the banks just led to paying debit card use. corporations are motivated by the prospect of making a profit(as they should be) and in the end, raising taxes equates to raising prices to make up the losses.
Taxes are not losses, profit occurs after losses, only profits are taxed. Banks are making obscene profits and paying corp officers obscene bonuses and record dividends. It is politically damaging to permit such a skewed situation to exist. If you're really from the beat gen, you'll remember when banks traded on safety and security and ran respectable if modest profits - and there were plenty of banks. We don't owe them a living.
That you run your business from your home and pay your employees in cash from under your matress while claiming no losses or expenses so that you pay the full amount of taxes that you owe?
The fact that businesses pass on their costs to consumers is beside the point - a tax system with loopholes that create an uneven playing field is a poor idea. That holds regardless of whether you believe that taxes are too high, too low, or just right.
If we want a tax system where the biggest companies pay little to no tax, that's fine (or at least, not inherently bad), but that system needs to be transparent and evenly applied.
@Gazbo - Then deny "them" a living and do no business with any bank.
@Publius: We just might. Plenty of credit unions to go around.
At least these corporations are paying people, probably rather well, to find loopholes etc. There's something (though not always a lot) to be said for good jobs, even if their purpose isn't the most noble.
There's a sceert about your post. ICTYBTIHTKY
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Now you say something