Waldron reports: "America's 10 most profitable corporations paid an average corporate income tax rate of just 9 percent in 2011, according to a study from financial site NerdWallet..."
Corporations are not showing patriotism when it comes to paying their fair share of takes. (image: corpwatch)
America's 10 Largest Corporations Paid 9 Percent Average Tax Rate Last Year
09 August 12
merica's 10 most profitable corporations paid an average corporate income tax rate of just 9 percent in 2011, according to a study from financial site NerdWallet reported by the Huffington Post. The 10 companies include Wall Street banks like Wells Fargo and JP Morgan Chase, oil companies like ExxonMobil and Chevron, and tech companies like Apple, IBM, and Microsoft.
The two companies with the lowest tax rates were both oil companies. ExxonMobil paid $1.5 billion in taxes on $73.3 billion in earnings, a tax rate of 2 percent. Chevron's tax rate was just 4 percent. None of the companies paid anywhere near the 35 percent top corporate tax rate, providing more evidence to debunk claims that America's corporate tax rate is stunting economic growth and job creation (Despite the high marginal rate, American corporations pay one of the lowest effective corporate tax rates in the world).
The study also calculated the overall amount the companies owed in both domestic and foreign taxes. This includes deferred taxes that will, theoretically, be paid in the future, once the companies bring foreign profits back to the United States. Apple, for instance, avoided $2.4 billion in American taxes last year by utilizing offshore tax havens.
If Republicans have their way, however, those deferred taxes may never be paid. Switching to a territorial tax system, a policy leading Republicans have considered, would allow corporations to repatriate foreign profits back to the United States nearly free of taxation, costing the country billions of dollars and thousands of jobs.
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Asked recently about news that Mitt Romney had money in offshore tax havens, Sen. Lindsey Graham (R-S.C.) said, "It's really American to avoid paying taxes, legally.... It's a game we play. ... I see nothing wrong with playing the game because we set it up to be a game."
This is all that is needed, just his quote. No explanation, no follow up, no background data sheet, or time line chart. Let every political ad contain only this quote!
Let it go viral and let Graham and his cohorts spend all their time and money explaining it away, if they would dare to try.
Let it start as a low flame on the cauldron of fed up Americans, and let it build, and then boil over and cleanse the corruption out of the Right-Wing's attempt to destroy our democracy.
This is why a flat tax for all, including corporations would be fair. It's also why that will never happen. Too many mega-bucks people and companies would have to start paying their fair share.
"Free Enterprise" (i.e., laissez faire "free market" capitalism) is a myth. It has never existed. Whether it was the railroads in the 19th century (they got free or very low-cost land from the gov't...not to mention the use of the US military to "clear" their way of those pesky Native Americans), or the internet in the 20th (not started by independent "kids" in their basements in Silicon Valley but rather defense contracts with the US dep't of defense) new industries have always been started and promoted/helped by the state.
However, a flat tax of any kind is inherently regressive since it taxes the rich and the poor at the same rate.
Whatever happened to the notion of a simple progressive income tax system (including a corporate income tax) with just a couple of graduated rates? Much fairer than any flat tax or sales/consumpti on tax proposals
But I prefer Wiki first explanation as then politically intended to be "Laissez-faire (i/ˌlɛseɪˈfɛər- /, French: [lɛsefɛʁ] ( listen)) is an economic environment in which transactions between private parties are free from tariffs, government subsidies, and enforced monopolies, with only enough government regulations sufficient to protect property rights against theft and aggression. The phrase laissez-faire is French and literally means "let [them] do", but it broadly implies "let it be," "let them do as they will," or "leave it alone." Scholars generally believe a laissez-faire state or a completely free market has never existed" But then no USA Government could ever do that ~ Must protect the 1% to 10% at least.
"Free Enterprise" is like a free lunch.
Flat tax only approaches fair if EVERY "person" if required to pay that tax on every penny of income.
The so called "flat tax" proposals put forward so far are only on EARNED INCOME, i.e. wages. Unearned income would not be taxed, nor would corporate profits.
The 1% would get off completely tax free.
Even if a flat tax taxed all income (earned and unearned) it is still a regressive taxation system (unless one exempts the firs xxxx dollars) because those at the bottom are forced to spend a much higher percentage of their income (and these folks have no unearned income) on basic necessitiies).. ..what's wrong with a simple progressive taxation system with a couple of tax brackets (though i agree completely that unearned income should be taxed at the same rate as earned income).
Over that earnings are then taxed.
Austraklia also the same, and sure businessmen deduct a whole lot more for fancy dinners entertaining and opulent items they claim as business expense.
Things like advertising and entertaining etc are best set at a maximum % of total sales or porofit or something.
Then the sliding scale tax allows that each dude pay the same tax on each income gradient as any other taxpayer.
The problems come in when super rich use tricky corporate ways and offshore accounts and so on.
How to beat the cunning in life is not for me to guess. But yes Capital Gains and unearned income, lotteries and inheritances shouod all be taxed at a flat rate I suggest 25%.
Yes the more one earns and declares the lower the % they pay on the next sector of income, the rational being in the earlier sector they already paid their share of services, transport subsidies, health maintenance etc. They still have the only the one body share of defence, police emergency care etc. Plus family so each dependent becomes an extra $YYYY to deduct before tax starts.
Well Said and right on target
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