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Corporate Welfare-GOP Wants Us to Pick Up Tab!
Last comment by shannalat 2 years, 4 months ago.

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Nobel prize-winning economist Joseph E. Stiglitz,argues that we must reform the tax code and stop subsidizing tax dodgers. A recent report by Americans for Tax Fairness suggests that corporate taxes are near a 60-year low — and that’s partially because corporations have become adept at not paying their share.

Robert R- Berkley Professor-It's time we eliminated the corporate income tax and made up the shortfall by increasing capital gains taxes. Here's the logic: First, the corporate income tax favors big companies that are able to shift their income abroad and engage in other tax-avoidance activities, while harming small companies that can't do any of this and therefore suffer a competitive disadvantage. Yet small companies are the engines of job growth in America.

Second, the people who actually pay the corporate income tax should properly be the company's shareholders, who are the legal owners of the company and who benefit from increases in its income. But in many cases, depending on the structure of the market, a significant share of the actual burden of paying the corporate income tax is often borne instead by employees in the form of lower wages, or consumers in the form of higher prices.

The best way to insure that it's shareholders and owners who actually pay the corporate income tax is to make it a tax on capital gains enjoyed by shareholders and owners rather than a tax on corporate income. Call it a "corporate income surcharge" and eliminate the corporate income tax.


Here’s a list of 10 tax-dodging corporations excerpted from the Americans for Tax Fairness report.

Bank of America runs its business through more than 300 offshore tax-haven subsidiaries. It reported $17.2 billion in accumulated offshore profits in 2012. It would owe $4.3 billion in US taxes if these funds were brought back to the US.

Citigroup had $42.6 billion in foreign profits parked offshore in 2012 on which it paid no US taxes. It reported that it would owe $11.5 billion if it brings these funds back to the US. A significant chunk is being held in tax-haven countries.

ExxonMobil had a three-year federal income tax rate of just 15 percent. This gave the company a tax subsidy worth $6.2 billion from 2010-2012. It had $43 billion in offshore profits at the end of 2012, on which it paid no US taxes.

FedEx made $6 billion over the last three years and didn’t pay a dime in federal income taxes, in part because the tax code subsidized its purchase of new planes. This gave FedEx a huge tax subsidy worth $2.1 billion.

General Electric received a tax subsidy of nearly $29 billion over the last 11 years. While dodging paying its fair share of federal income taxes, GE pocketed $21.8 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.

Honeywell had profits of $5 billion from 2009 to 2012. Yet it paid only $50 million in federal income taxes for the period. Its tax rate was just 1 percent over the last four years. This gave it a huge tax subsidy worth $1.7 billion.

Merck had profits of $13.6 billion and paid $2.5 billion in federal income taxes from 2009 to 2012. While dodging its fair share of federal income taxes, it pocketed $8.7 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.

Microsoft saved $4.5 billion in federal income taxes from 2009 to 2011 by transferring profits to a subsidiary in the tax haven of Puerto Rico. It had $60.8 billion in profits stashed offshore in 2012 on which it paid no US taxes.

Pfizer paid no US income taxes from 2010 to 2012 while earning $43 billion worldwide. It did this in part by performing accounting acrobatics to shift its US profits offshore. It received $2.2 billion in federal tax refunds.

Verizon made $19.3 billion in US pretax profits from 2008 to 2012, yet didn’t pay any federal income taxes during the period. Instead, it got $535 million in tax rebates. Verizon’s effective federal income tax rate was negative 2.8 percent from 2008 to 2012.


Good read from post earlier this year.

Latest Activity: Aug 25, 2014 at 6:35 PM

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PoliticsNation commented on Monday, Aug 25, 2014 at 18:55 PM

Top Democrat Tries to Stop Burger King From Fleeing the Country to Avoid Taxes

Burger King is on the run. Perhaps they got a look at Mitt Romney’s ability to avoid paying taxes and they wanted to get themselves some of that patriotic action.

Upon news that Burger King is fleeing the country to merge with Canadian Tim Hortons, Ways and Means Committee Ranking Member Sander Levin (D-MI) called on Congress to pass that inversion legislation (Stop Corporate Inversions Act of 2014) already:

“The reported deal with Burger King, an American company, highlights the need for Congress to act with urgency to keep companies in the U.S. rather than moving abroad. We need to seriously examine the reasons behind this reported deal and take steps in the immediate future to prevent further erosion of the U.S. tax base.”

By “inversions”, Democrats basically mean corporations that flee the country to avoid paying taxes. They say this is an increasing problem, and reality agrees as U.S. companies are renouncing their citizenship and going overseas in order to avoid paying taxes to cover their fair share of usage of all things public. Since 2013, 19 companies got the idea to cut and run while still taking advantage of things our tax dollars pay for. Where did they ever get that idea?

PoliticsNation commented on Monday, Aug 25, 2014 at 18:56 PM

Link to blog posted above


gacpl commented on Monday, Aug 25, 2014 at 19:17 PM

the simple solution is to cut the Corporate tax rate to compete with other country's. burger king paid 88.5 million last year in taxes. so what are we gaining by keeping the tax rate as high as it is? nothing, we are loosing.

and of those 10 companys you listed. how many people do they employ? a lot more than you will if they cut your taxes.

PoliticsNation commented on Monday, Aug 25, 2014 at 19:32 PM

The best way to insure that it's shareholders and owners who actually pay the corporate income tax is to make it a tax on capital gains enjoyed by shareholders and owners rather than a tax on corporate income. Call it a "corporate income surcharge" and eliminate the corporate income tax.


PoliticsNation commented on Monday, Aug 25, 2014 at 19:37 PM

Burger Kind made 275.1 million in profits in the third quarter alone!!!!88.5 is nothing for them to pay over a years time...


Burger King reported $275.1 million in third quarter revenue, a 40% decrease over this time last year but beating analyst predictions of $267 million. Despite this decrease, profit increased 32.7% to $81.1 million, or 23 cents per share, beating the Street consensus of 21 cents per share. A sharp drop in operating expenses, which fell over 64% due to cost management and a global refranchising effort, the company said.

timeontarget commented on Tuesday, Aug 26, 2014 at 06:54 AM

But what about party politics?

There is no discernible difference between the two major parties.

Both promote big government over the individual. We can use history as our guide. Candidates from both parties constantly run on promises of “change.”

But the only change we see is a rearranging of which special interest gets the best seat at the table.

Regardless of the party in charge, government grows and liberty is lost. The two major parties control the process and will never allow another party to invade their turf, hence the mistreatment of Ron Paul and his supporters and Tea Party Republicans during the 2012 election cycle, and since.

gacpl commented on Tuesday, Aug 26, 2014 at 09:00 AM

88.5 million may seem like nothing compared to what they pulled in, but if was your company and you could pay about 8 to 9 million less you would. because that what business is about, making money. if our tax rate was better we could have gained the money that Tim Horton's pays in taxes. if nothing is done to make big businesses want to stay here they wont. read the post i did about 10 people going to dinner to explain taxes. now the 10th man left the group. do we really want to tax another one away?

gacpl commented on Tuesday, Aug 26, 2014 at 09:39 AM

here's the numbers for 2013 as reported by Organization for Economic Cooperation and Development (OECD)


HMJC commented on Tuesday, Aug 26, 2014 at 15:34 PM

We may as well finance the "GOP" tax agenda as we all continue to pay though the nose for the DEM answer.

shannalat commented on Wednesday, Aug 27, 2014 at 08:46 AM

The United States tax code is a joke. There are 73,954 pages as of 2013 in the Tax code. This is out of control and both parties have there share of revisions and edits to the code.
To say one party or the other has the answer is.. well wrong neither party has the answer. Since 1913 the tax code has never shrank. More and more laws and loopholes have been added.

PoliticsNation commented on Wednesday, Aug 27, 2014 at 09:00 AM

@Shannalat--you may want to go back and do your homework on this one. The GOP has blocked the Dems. when they have taken measures to revise or eliminate outdated code. Your feel good quotes sounds good but this one requires more research.

shannalat commented on Wednesday, Aug 27, 2014 at 10:17 AM

The dems bring only quick fixes. The "blocking" of the fixes was done because (well more than likely as part of political grandstanding too) so that a dialogue can be opened to actually fix the tax code. The quick fixes would add more pages to the broken system and more than likely not make the code smaller.
The last time the tax code was made more simple was 1986, so I do stand corrected in that however this was done by a republican president, a republican senate and a democratic house.

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