In order for the American dream to work, everyone must do their part. As you can see from this report, the majority of the corporations doing business here don’t.
WASHINGTON — Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.
The study by the Government Accountability Office said about 68 percent of foreign companies doing business in the U.S. avoided corporate taxes over the same period.
Collectively, the companies reported trillions of dollars in sales, according to the GAO.
Many companies paid no taxes in 7-year period | Business | Chron.com – Houston Chronicle.
Now most corporations in America are start-ups or small, mom and pop operations that have adopted a corporate form to lower their tax rates. And a greater percentage of large corporations do pay some taxes. But in 2005, with corporate profits reaching new heights as a percentage of national income, the GAO found that over one-fourth — 28% of large corporations paid no taxes. (It defined large corporations as those with assets of at least $250 million dollars or gross receipts of at least $50 million dollars.) They can tell you how to make $50 million dollars and not pay taxes.
Not surprisingly, the income collected from corporations has been declining as a percentage of GDP, with the burden transferred to your income and payroll taxes. According to a study by the Treasury Department, from 2000-2006, an average of 2.2% of GDP was collected in corporate taxes. This compares to an average of 3.4% in other industrial countries. The nonpartisan Congressional Budget Office projects that, under current law, corporate revenues will decline to 1.9% of GDP by 2017.
It’s the very infrastructure the taxes support that these profitable companies do not contribute to. Yet they are able to spend millions each year buying influence at every level of government. It seems to me that that is where campaign finance needs to start. Banning non-personal contributions would be a good place to begin.
What do you think?
Related articles by Zemanta
- US report sparks corporate tax row
- Most firms pay no income taxes – Congress
- Report: Most Corps Avoid Fed Taxes
- Most Companies Pay No Federal Income Tax
- Most Corporations Pay No Income Tax