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Representation Without Taxation: Study Says Most Corporations Avoid US Income Tax

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Representation Without Taxation: Study Says Most Corporations Avoid US Income Tax Two-thirds of US corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress. The study by the Government Accountability Office, expected to be released Tuesday, said about 68 percent of foreign companies doing business in the US avoided corporate taxes over the same period. Collectively, the companies reported trillions of dollars in sales, according to GAO's estimate.

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MartiniLush MartiniLush 8 years
Michelin, this report is available at the GAO web site if you would like to view it. (www.gao.gov)
organicsugr organicsugr 8 years
I'm with stephley. We must trust the government.
stephley stephley 8 years
We're in a world of hurt if we can't trust the GAO.
Michelann Michelann 8 years
This study doesn't sound so reliable. I'm wary of studies in general, but this one hasn't even been released, so how can we be upset about it's findings? Furthermore, the study "did not investigate why corporations weren't paying federal income taxes or corporate taxes and it did not identify any corporations by name". How can we check the facts on a study that doesn't bother to identify any of its subjects by name? That's ridiculous.
UnDave35 UnDave35 8 years
OK, I think that is a problem. I'm not sure what we should do about it, but there needs to be a change in the corporate tax structure.
True-Song True-Song 8 years
Holy moly. This is outrageous!!!
stephley stephley 8 years
Well how exactly is the bill for the war going to be paid ?
MartiniLush MartiniLush 8 years
Ok, UnDave, I searched and this was what I found (almost the only mention of it, in fact!) - below is copied directly from the US Chamber of Commerce web site: "The bulk of government revenue (more than 93% in 2006) comes from three sources: taxes on individual income, corporate income, and social insurance. By far, the largest of these is individual income taxes, which topped $1.0 trillion in 2006, or 43% of total revenues. Social insurance taxes are next with $838 billion in 2006, representing about 35% of all revenues. Finally, corporate taxes in 2006 were a record $354 billion, or almost 15% of total receipts, the highest share since 1978."
UnDave35 UnDave35 8 years
I'd like to know what federal taxes were paid by corporations. It's pretty easy to "cook" the books to make it look like you've had not "net" income.
Jillness Jillness 8 years
Daaaaang!
MartiniLush MartiniLush 8 years
Ok, so the Tax Foundation's web site puts the average US Corporate taxation rate at 39%. So 39% of 2.5 trillion would be $975,000,000,000 !!!! (figured this out using Google calculator) WOW!
Jillness Jillness 8 years
"More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million U.S. companies paid no income tax, the GAO said. Combined, the companies had $2.5 trillion in sales." I thought this might help point you in the right direction for your question, Martini. I guess whatever the taxes on $2.5 Trillion would be! My brain can't handle numbers that big. ;)
stephley stephley 8 years
Drink some kool-aid, maybe you can get to a point where you're even okay with it.
liliblu liliblu 8 years
I was kinda sad that this story didn't surprise or shock me.
stephley stephley 8 years
I saw this story on FoxNews this morning. It only sounds to liberals as if it should be a problem - really, it's okay, so just relax.
MartiniLush MartiniLush 8 years
The linked article doesn't give any $$...I wonder how much lost tax revenue this represents??
Jillness Jillness 8 years
"Two-thirds of US corporations paid no federal income taxes between 1998 and 2005" "68 percent of foreign companies doing business in the US avoided corporate taxes over the same period." Those are HUGE numbers!
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