Aug 12, 2008

Millions of U.S. corporations do not pay federal taxes


I know this is a local blog on Michigan and the media, but this national story really caught my attention.

According to a study by the Government Accountability Office (GAO), two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, and 68 percent of foreign companies doing business in the U.S. avoided corporate taxes over the same period.

I want to hear the take on this from right-wingers who regularly take shots at me here.

Our own Sen. Carl Levin, along with Sen. Byron Dorgan, D-N.D., asked for the GAO study that found corporations did not pay taxes on trillions of dollars in sales. More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million U.S. companies paid no income tax. It’s sad that corporations are making huge profits and pay nothing to support this country.

17 comments:

the truth hurts said...

First I would like to ask you the following question:

Who pays taxes, people or businesses?

Second you should be honest when you write your blogs and tell the whole story not just the left's talking points, please read the following:

An outside tax expert, Chris Edwards of the libertarian Cato Institute in Washington, said increasing numbers of limited liability corporations and so-called "S" corporations pay taxes under individual tax codes.

"Half of all business income in the United States now ends up going through the individual tax code," Edwards said

Communications guru said...

It would be nice if you could make a point instead of questions. I am being honest, and I referenced my source with a link. I’m not using any talking points. I read the sentence in the story I provided. That certainly does not mean they are they are paying their fair share or paying taxes at all. What about the other half?

the truth said...

Fine but who do you think pays taxes, businesses, people or both?

Brett said...

The story said that the corporations "avoided" paying taxes. It didn't say if they had taxes due. Later in the story it said that corporations are paying through individual taxes.

Nowhere did it say that any of the corporations are doing anything illegal but it did say that the IRS had reviewed records of over 110,000 companies. The story never said that the IRS found anything illegal.

The appearance of the story, and the bringing up of it on this blog with no illegalities brought out seem to indicate that this is a witch hunt with no substance yet.

The writer is correct that it doesn't mean that they are paying their fair share. On the other hand, what's reported in this story and the comments by the writer of this blog does not mean that they aren't paying their share.

This is a non-story and a non-issue if there is nothing illegal going on. When charges are brought against these 2/3 of corporations, then I'll consider that there is something to worry about.

However, with tax revenues at an all time high the past several years, it really seems that more and more are paying taxes and paying higher taxes. Since the tax rates have gone down the past seven years, this whole thing only tells me that tax cuts work....again.

Brett
conservativelifestyle.blogspot.com

Communications guru said...

It said half of corporations are using the “limited liability corporations and so-called "S" corporations” loophole to avoid paying their fair share. What about the other half, and why use a loophole? It also said “companies may escape paying such taxes due to operating losses or because of tax credits,” and the key word is escape.

No, the IRS did not review anything, the GAO did: “The GAO said it analyzed data from the Internal Revenue Service, examining samples of corporate returns for the years 1998 through 2005.”

It’s wrong for corporations to benefit and profit from the infrastructure and other things taxes provide, but they do not pay their fair share. It's a very newsworthy story. I think most Americans believe corporations are paying their fair share of taxes.

I do not believe tax cuts increase tax revenue. You have not provided any thing to back up your claims, like SouthwestWashtenaw does.

Brett said...

http://www.ncpa.org/sub/dpd/index.php?Article_ID=14525

Brett
conservativelifestyle.blogspot.com

Communications guru said...

http://www.cbpp.org/3-19-04tax.htm

The truth hurts said...

Who pays taxes, businesses, people or both?

Communications guru said...

Do you have a point? How about making it.

the truth hurts said...

What is wrong with you?

Why can you not answer a simple question?

It is a simple question, who pays taxes: Businesses, people or both?

You wrote then darn blog, about businesses and taxes why can you not answer the question?

Communications guru said...

The answer is obvious. Those who benefit from what the taxes do or are a part of this society should pay taxes.
For the third time, if you have a point to make or want to dispute what I write, then go ahead and make your point. I’m not going to play silly games.

Brett said...

If the question can't be answered, it can't be answered. No shame in not knowing the answer.

Brett
conservativelifestyle.blogspot.com

SouthwestWashtenaw said...

brett said..."If the question can't be answered, it can't be answered. No shame in not knowing the answer."
-That must be why you won't answer some of the questions that I have asked you in the past few weeks...just confirms that much of what you posted was empty rhetoric - you won't provide specifics because you can't.

the truth hurts said..."It is a simple question, who pays taxes: Businesses, people or both?"
-Of course the answer is both...individuals pay taxes and businesses/corporations do as well. You would probably respond by saying something like businesses don't pay taxes, they pass on all of those costs to consumers, etc. (which is debatable) - but it is pretty clear that businesses do pay taxes. Ernst & Young, for example, produces an annual study of state/local business taxes and in their 2007 press release they indicated that state and local business taxes in the U.S. totaled $554 billion in FY 2006.
-While I'm here I'll try once again to get the truth hurts to answer “a simple question”...From my first post on this blog back in July...

the truth hurts said "...and since Jenny our DEMOCRAT Senator has taken over MI has lost 490,000 jobs."

-Could you provide a source for that number?
...You never provided a source. I asked you again on two occasions about a week later (in a different thread) and you never provided an answer. You did post the following “Your theory - raise taxes and more money comes in WRONG. My theory - lower taxes and more taxes come in RIGHT”
-I then provided actual tax revenue data directly from the State of Michigan website which refutes your claim...and you of course had nothing to say.

the truth hurts said...

CG

WHO PAYS TAXES: BUSINESSES, PEOPLE OR BOTH?

Communications guru said...

Both.

the truth hurts said...

Thank you for answering.

Now please enlighten me on a tax that a Mr or Mrs business pays and a person does not?

I am seriously not trying to be a smart ass here I am just trying to enlighten people to the fact that businesses do not pay taxes, we do.

In fact the lower class, people who do not make much and people who do not work at all and suck off the people who do work - all people who pay those taxes

Communications guru said...

I guess you’re back to playing this game again. If you have a point why can’t you just make it? Are you seriously telling people that business does not pay taxes? That’s simply not true, and I don’t understand the relevance of asking what tax does business pay that people don’t. And, we are talking about corporations. According to the IRS, “Most large corporations are classified as C corporations and are required to file a federal corporate income tax return with the IRS every year.”

I don’t consider poor people to be “lower class.” There are millions of people working two and three jobs that are just making ends meet if at all. They are not “sucking off anyone.” There are millions of people out there who have lost jobs to no fault of their own who need help. There are working people who are injured on one of those two or three minimum wage jobs that had no health care who can no longer work who need help.