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Even with an effective tax rate of 17.3% 30 of American's largest and most profitable corporations paid no corporate income tax.
In 2010, Verizon reported an annual profit of nearly $12 billion. The statutory federal corporate income tax rate is 35 percent, so theoretically, Verizon should have owed the IRS around $4.2 billlion. Instead, according to figures compiled by the Center for Tax Justice, the company actually boasted a negative tax liability of $703 million. Verizon ended up making even more money after it calculated its taxes.
Verizon is hardly alone, and isn’t even close to being the worst offender. Perhaps most famously, General Electric raked in $10.5 billion in profit in 2010, yet ended up reporting $4.7 billion worth of negative taxes. The worst offender in 2010, as measured by its overall negative tax rate, was Pepco, the electricity utility that serves Washington, D.C. Pepco reported profits of $882 million in 2010, and negative taxes of $508 million — a negative tax rate of 57.6 percent.
Report: Thirty corporations paid no income tax 2008-2010
Report: Thirty corporations paid no income tax 2008-2010 - World - Canoe.ca (http://cnews.canoe.ca/CNEWS/World/2011/11/03/18917591.html - broken link)
hirty large and profitable U.S. corporations paid no income taxes in 2008 through 2010, said a study Thursday that arrives as Congress faces rising demands for tax reform, but seems unable or unwilling to act.
Pepco Holdings, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent, among the 280 Fortune 500 companies studied.
The statutory U.S. corporate income tax rate is 35 percent, one of the highest in the world, but over the 2008-2010 period, very few of the companies studied paid it, said the report.
Corporations Pay More in Total Tax Than They Make In Profit
"While the corporate income tax code - like the personal income tax code - is complicated by too many credits and deductions that benefit a narrow set of taxpayers at the expense of the many, it is wrong to conclude that corporations in general pay little or no tax. Besides paying corporate income taxes to the U.S. federal government and foreign governments, corporations pay a litany of other taxes, including state and local corporate income taxes, sales, property, and payroll and social security taxes.
The graph below tells the story. It shows 15 years of IRS data, 1994 to 2008, on all corporate income tax returns. It indicates that on average, and in all but three of those years, total taxes paid by corporations exceeded after-tax profits. "
Corportations should NOT be paying ANY taxes. People (shareholders and customers) pay taxes.
Did you forget, "corporations are people too"?
Anyway, both points are a two different topics. The issue of THIS thread is that if the complaint that corporate taxes are too high for them to remain competitive on a global scale then the data should bear out that argument. It appears that it doesn't.
we have the highest corporate tax rate in the world...
the only reason "some" companies are paying nearly nothing is because they are Transnational corps who pay taxes (and get credited for) in other countries
for example while Verison "would" have a tax of 4.2 billion in the usa(if they were "just" a usa company). but they paid over 5 billion in taxes "world wide" therefore giving them a credit for USA taxes
Thirty companies paid no income tax 2008-2010: report - Yahoo! News (http://news.yahoo.com/thirty-companies-paid-no-income-tax-2008-2010-042531293.html - broken link)
Reuters) - Thirty large and profitable U.S. corporations paid no income taxes in 2008 through 2010, said a study on Thursday that arrives as Congress faces rising demands for tax reform, but seems unable or unwilling to act. Pepco Holdings, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent, among the 280 Fortune 500 companies studied.
The statutory U.S. corporate income tax rate is 35 percent, one of the highest in the world, but over the 2008-2010 period, very few of the companies studied paid it, said the report.
Thirty companies paid no income tax 2008-2010: report - Yahoo! News (http://news.yahoo.com/thirty-companies-paid-no-income-tax-2008-2010-042531293.html - broken link)
Reuters) - Thirty large and profitable U.S. corporations paid no income taxes in 2008 through 2010, said a study on Thursday that arrives as Congress faces rising demands for tax reform, but seems unable or unwilling to act. Pepco Holdings, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent, among the 280 Fortune 500 companies studied.
The statutory U.S. corporate income tax rate is 35 percent, one of the highest in the world, but over the 2008-2010 period, very few of the companies studied paid it, said the report.
The 2008 tax code was written by the 2007 (Democrat) Congress.
Funny how they don't look back any farther than 2008.
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Report: Thirty corporations paid no income tax 2008-2010
Corporations Pay More in Total Tax Than They Make In Profit
