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Of course, corporate taxes aren't just 35%. They are 35% + 7-9%, depending on the state you're incorporated in. Also, the new law won't change anything, as the management will simply move abroad also.
Even Peter Schiff has finally jumped on the bandwagon and decided to open up a new office in the Caribbean.
It was thoroughly enjoyable to watch this perspective, to see how inept people can be by looking at this from a purely emotional and tax hungry perspective.
Of course, corporate taxes aren't just 35%. They are 35% + 7-9%, depending on the state you're incorporated in. Also, the new law won't change anything, as the management will simply move abroad also.
Even Peter Schiff has finally jumped on the bandwagon and decided to open up a new office in the Caribbean.
It was thoroughly enjoyable to watch this perspective, to see how inept people can be by looking at this from a purely emotional and tax hungry perspective.
The irony of the 60 minute segment is that Ireland one of the countries they touted as a low tax corporate mecca is now broke and the EU is INSISTING it raise its corporate tax rate before they get ANOTHER ROUND of funding.
Another irony is that GE actually got a tax BENEFIT of over 3 BILLION DOLLARS from the United States Government last year.
The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.
Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.
Quote:
Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.
While General Electric is one of the most skilled at reducing its tax burden, many other companies have become better at this as well. Although the top corporate tax rate in the United States is 35 percent, one of the highest in the world, companies have been increasingly using a maze of shelters, tax credits and subsidies to pay far less.
In a regulatory filing just a week before the Japanese disaster put a spotlight on the company’s nuclear reactor business, G.E. reported that its tax burden was 7.4 percent of its American profits, about a third of the average reported by other American multinationals. Even those figures are overstated, because they include taxes that will be paid only if the company brings its overseas profits back to the United States. With those profits still offshore, G.E. is effectively getting money back.
For all the bitching corporations are going about corporate taxes the EFFECTIVE TAX RATE for most corporations is significantly lower the actual tax rate when depreciation, subsidies and other government tax loopholes and government give backs are thrown in.
The entire "60 Minutes" segment was an example of corporate propaganda at its finest.
The irony of the 60 minute segment is that Ireland one of the countries they touted as a low tax corporate mecca is now broke and the EU is INSISTING it raise its corporate tax rate before they get ANOTHER ROUND of funding.
For all the bitching corporations are going about corporate taxes the EFFECTIVE TAX RATE for most corporations is significantly lower the actual tax rate when depreciation, subsidies and other government tax loopholes and government give backs are thrown in.
The entire "60 Minutes" segment was an example of corporate propaganda at its finest.
Would you prefer Stahl project the emotional crybaby tone of populists?
GE isn't irony in the least. GE is a favorite organization. See, unlike the Swiss the Irish, our leaders like to pick winners and losers like GE, GM, Fannie Mae, etc.
Of course, corporate taxes aren't just 35%. They are 35% + 7-9%, depending on the state you're incorporated in. Also, the new law won't change anything, as the management will simply move abroad also.
Even Peter Schiff has finally jumped on the bandwagon and decided to open up a new office in the Caribbean.
It was thoroughly enjoyable to watch this perspective, to see how inept people can be by looking at this from a purely emotional and tax hungry perspective.
Quote:
Republicans in the House want to balance the budget by denying more than 200,000 little children the opportunity to receive an early education through Head Start; reducing or eliminating Pell Grants for 9.4 million college students; eliminating primary health care services to 11 million Americans; and delaying Social Security benefits to half a million eligible Americans, among other things.
Before Congress cuts funding for Head Start, Social Security, and financial aid for college, we have got to make sure that large, profitable corporations are paying their fair share of taxes.
At a time when we have a $14.2 trillion national debt and a $1.6 trillion federal deficit, it is unacceptable that Exxon Mobil, General Electric, Bank of America, Chevron, Boeing, and other large, profitable corporations are not only avoiding paying any federal income taxes at all but have actually received huge refund checks from the IRS.
Loopholes in the tax code, offshore tax havens, tax breaks to companies that export American jobs to China, and other tax breaks have allowed giant corporations in America to receive billions in refunds from the IRS.
Meanwhile corporations are sitting on nearly $2 trillion in cash on hand, and big banks have nearly a trillion dollars in excess reserves parked at the Federal Reserve.
In 2005, one out of four large corporations paid no income taxes at all even though they collected $1.1 trillion in revenue over that one-year period.
In 2009, Exxon Mobil made $19 billion in profits. Not only did Exxon not pay any federal income taxes, it actually received a $156 million rebate from the IRS, according to SEC filings.
Bank of America received a $1.9 billion tax refund from the IRS last year, even though it made $4.4 billion in profits and received a bailout from the Federal Reserve and the Treasury Department of nearly $1 trillion.
Boeing, which received a $30 billion contract from the Pentagon to build 179 airborne tankers, got a $124 million refund from the IRS last year.
Valero Energy, the 25th largest company in America with $68 billion in sales last year, received a $157 million tax refund check from the IRS and, over the past three years, it received a $134 million tax break from the oil and gas manufacturing tax deduction.
In 2008, Goldman Sachs only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion from the Federal Reserve and U.S. Treasury Department.
Last year, Citigroup made over $4 billion in profits but paid no federal income taxes, even though it received a $2.5 trillion bailout from the Federal Reserve and U.S. Treasury Department. Over the past five years, while General Electric made $26 billion in profits in the United States, it received a $4.1 billion refund from the IRS. According to a New York Timesarticle, "G.E. is so good at avoiding taxes that some people consider its tax department to be the best in the world, even better than any law firm's."
Yes, our tax "burden" is what's driving corporations overseas, not just their greed. Looks like I paid more in taxes than a lot of those corporations combined. And aren't we all assured, according the Gospel of Ronald Reagan, that once these wealthy fat cats amassed large sums of money that it would "trickle down" to the rest of us? Aren't we supposed to be seeing an explosion of job creation now? Must be one slow trickle...
Yes, our tax "burden" is what's driving corporations overseas, not just their greed. Looks like I paid more in taxes than a lot of those corporations combined. And aren't we all assured, according the Gospel of Ronald Reagan, that once these wealthy fat cats amassed large sums of money that it would "trickle down" to the rest of us? Aren't we supposed to be seeing an explosion of job creation now? Must be one slow trickle...
Corporations go overseas to make money not to reduce tax. However, once overseas, they take advantage of those jurisdictions to minimize their tax liability.
The irony of the 60 minute segment is that Ireland one of the countries they touted as a low tax corporate mecca is now broke and the EU is INSISTING it raise its corporate tax rate before they get ANOTHER ROUND of funding.
You might have missed the memo, all countries are now broke, regardless of their tax rate..
Quote:
Originally Posted by JazzyTallGuy
Another irony is that GE actually got a tax BENEFIT of over 3 BILLION DOLLARS from the United States Government last year.
Stop using GE to blanket all corporations as the same.. the ONLY reason GE got a $3B tax benefit last year is because the CEO got $3.2B in credits from the Obama stimulus package in exchange for GE investing $10B in renewable energy. Yes, the very same CEO that heads up Obamas job creation board, while laying off 18,000 of his own employees..
Dont you wish you could bribe presidents into give you similar credits?
Quote:
Originally Posted by JazzyTallGuy
For all the bitching corporations are going about corporate taxes the EFFECTIVE TAX RATE for most corporations is significantly lower the actual tax rate when depreciation, subsidies and other government tax loopholes and government give backs are thrown in.
You clearly missed the point of the video. The point was that the ONLY reason the effective tax rate is lower for most corporations because corporations are forced to change how they would normally operate in order to get credits. Your GE is a prime example.. By GE's own admission they will invest in whatever the government will give them credits to invest in.. The point is there SHOULDNT be a need for loopholes and government givebacks, especially for those few that can bribe the politicians to give them special exemptions like GE enjoyed..
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