Monday, April 4, 2011

Corporate America has a smaller tax bill than you do

Nancy Folbre: Tax Havens and Treasure Hunts -

"Our budget deficit would be smaller – and pressure to cut social programs lower – if corporate tax revenues had not declined over time relative to gross domestic product and relative to individual income tax revenues.

Corporate America is a world leader in creative tax minimization. As David Kocieniewski reported in The New York Times, General Electric used some particularly innovative strategies to take advantage of overseas tax havens, including “offshore profit-shifting.”

The Boeing Corporation, a major federal contractor, has had a net rebate in federal taxes over the last three years, and a total tax rate of 4.5 percent over the last five years, though the company points to pension contributions and research credits that have reduced the bill.

In 2008, the Government Accountability Office reported that 83 of the 100 largest publicly traded corporations in the United States had subsidiaries in jurisdictions listed as tax havens; it cautiously emphasized that this did not prove that their decisions to locate there were motivated by tax minimization."


namefromthepast said...

...and the momentum builds for the fair tax.

All income tax debate is a dry hump.

Tax more then we send more money overseas and create less total revenue because it is stifling business. Tax less to grow business and jobs...the same circular debate.

Any rate other than 0% or 100% is arbitrary therefore wrong according to some.

The fair tax makes far more sense compared to the impossible tax code today.

(Who likes the IRS enough to defend them? If the Rep party had any sense they'd make Dems defend the IRS and run on the fair tax)

It would also help to curb illegal immigration, if that were of any concern.

Leave it to the nytimes to be surprised and dismayed that businesses, driven by profit in a world economy, are acting within the limits of the law to maximize profit.

The US can become a tax haven and still fund our government.

83% of the top 100 companies being in tax havens goes a long way to prove that is why they are there and, interestingly enough, that 17% of these companies CEO's haven't gone to the effort YET.

Seeker said...

Whoever is fooled by the lunatic farce called "Fairtax" pay attention.

You should read the fine print.

It's goofy nonsense.

Not sorta, not kinda, not in a way. It's bizarro world bullship.

Here is proof. Don't take MY word for it - that means nothing.

This shows Fairtax spokesmen admitting to their goofy fine print, and trying to explain it.