Sources: Market Watch, Bloomberg, USA Today
quote: Instead of giving money to the government, it turns out more than a few U.S. companies are actually making money off their income taxes.In a recent report by the Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic Policy, 26 of 30 Fortune 500 companies examined had negative income tax rates on profits made in the U.S. between 2008 and 2011 (h/t Think Progress).
quote: The report issued by Citizens for Tax Justice and the Institute on Taxation and Economic Policy paints the corporate tax code as wildly inefficient, filled with loopholes and subject to the influence of lobbyists who carve out special provisions for the companies they represent.The study looked at 280 companies in the Fortune 500 that were profitable for all three years between 2008 and 2010.The results: 111 companies paid effective tax rates of less than 17.5% over the three-year period; 98 paid a rate between 17.5% and 30%; and 71 paid more than 30%.The average rate? 18.5%.
quote: 30 Companies average less than zero tax bill in the last three Years, 78 had at least one no-tax year.
quote: the United States actually has the lowest corporate tax burden of any of the member nations of the Organization for Economic Cooperation and Development.
quote: quote: Instead of giving money to the government, it turns out more than a few U.S. companies are actually making money off their income taxes. - Huff&Puff
quote: The average rate? 18.5%. -CNN
quote: quote: the United States actually has the lowest corporate tax burden of any of the member nations of the Organization for Economic Cooperation and Development. - CTJ
quote: Individual taxpayers in the "99 percent category" typically pay 25-30+ percent.
quote: Oh poor corporations, how sad of them having to pay a minor fraction of their massive profits compared to what their smaller competitors and individuals pay. Yes, how unfair.
quote: Don't cry when your job get shipped overseas, praise the glorious corporate machine.
quote: Well yeah, because our government is so fiscally responsible with its money and has regulations like corporations to deal with in fiscal responsibility.
quote: And taxing them at what, 40%, 50%, will bring jobs back? What's the number Jason? What's the magic corporate tax rate that will make things "happen" again?
quote: Well it's all in the perspective:http://www.businessinsider.com/ireland-bound-eaton...Keep raising them taxes and watch those jobs come right back!
quote: Half of those "99%" pay next to nothing after tax breaks like the EIC while the top 25% pays nearly 90%:http://ntu.org/tax-basics/who-pays-income-taxes.ht...
quote: "Profits" are different than profit margins, which is what counts on the books in quarterly earnings reports.
quote: Yep, because government is so great at fiscal responsibility with the money others, and other entities, create.Seriously, man?
quote: But enough with the Obama Talking Points, okay?
quote: As for a flat tax, I'm with you on that one. But you can see how easy it will be for legislators to start out with a flat tax and then do carve-outs and breaks, in some cases because they are beholden to donors and in other cases simply because they believe certain things should be promoted (such as charitable donations, or --gasp!-- investing in industry).
quote: (1) You are NOT being "taxed at 30+ percent." That's the MARGINAL rate; your overall rate is probably 15%. Divide the amount of tax you paid last year by your income last year.(2) You just hate the fact that those fat cats are taxed at just 15%. You do understand, don't you, that those are capital gains, which the government has for a very long time should be taxed at a lower rate in order to encourage investment. Tell you what: you make a crapload of money at your regular job, then after paying regular income tax you take the net proceeds and buy a crapload of stock. Wait a year, then quit your regular job and sell a little stock at a time. Guess what? You too will be paying just 15%!
quote: http: //economix.blogs.nytimes.com/2011/05/31/are-t... quote: the United States actually has the lowest corporate tax burden of any of the member nations of the Organization for Economic Cooperation and Development.
quote: Jason, that's a common trick I see to try to make it look like U.S. corporations aren't paying their fair share of taxes. Frequently it's coupled with an argument that U.S. corporate tax rates need to be increased (even though they're already the highest in the OECD).Looking at corporate tax receipts as a percent of GDP fails to take into account that the U.S. has a substantially lower overall tax burden than most OECD countries. In other words, it is not a valid data point for the question: "Are corporations paying their fair share of taxes?" (ignoring for this post that the difference between corporate and personal taxes is irrelevant)The U.S. typically sits at 25%-28% tax revenue as percent of GDP, while the OECD average is around 35%.http://www.oecd-ilibrary.org/content/table/2075851...http://www.oecd-ilibrary.org/taxation/taxes-on-cor...If you take the average of the 2003-2009 data from the above two tables, you find that:- U.S. tax revenue is 26.4% of GDP- OECD tax revenue is 34.7% of GDP- OECD tax revenue is 1.315x higher than the U.S.- U.S. corporate tax revenue is 2.56% of GDP, 9.70% of total- OECD corporate tax revenue is 3.41% of GDP, 9.85% of total- OECD corporate tax revenue is 1.335x than the U.S.In other words, corporations aren't being favored in the U.S. The ratio of corporate tax receipts to overall tax revenue for the U.S. and the OECD average are virtually identical. By OECD standards, U.S. corporations are paying their fair share of taxes. The lower tax revenue from corporations in the U.S. is almost exactly explained by the lower overall tax burden in the U.S.(The difference isn't quite so close. Ideally, you should subtract the U.S. from the OECD average before comparing. But it's late, I need to get to sleep, and the U.S. represents just 1/34th of the average so the error is going to be very small.)