Wednesday, August 13, 2008

Most Corporations Pay NO Income Tax

I mean do you have to have fucking economics degree to understand why we are in debt, why the dollar is weak and why the system is so far out of whack we are on the verge of disaster. In a time of war corporations are paying no income tax. And this is good how?

A new study by the GAO says most corporations, including the vast majority of foreign companies doing business in the United States, pay no income taxes. During the eight-year period covered by the report, 72 percent of foreign-owned corporations went at least one year without owing taxes, and the same was true for 55 percent of domestic corporations.

Small companies were much more likely to pay no taxes than larger companies. Still, more than 3,500 large domestic corporations - with more than $250 million in assets or $50 million in gross receipts - did not pay taxes in 2005.

The report said about 80 percent of the companies studied paid no taxes because they didn't generate any profit after expenses. Money-losing companies can legitimately owe no tax, and others can use provisions of the tax code to lower or eliminate their liability.

Simply irresponsible to allow this to happen, whether it is the tax code that allows this or funny corporate financing, allowing this to happen is taking money out of the system and in the pockets of big business. If you aren't angry you aren't paying attention.

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