30 Major Corporations Paid No Income Taxes in The Last Three Years

cybercoma · November 3, 2011

http://thinkprogress.org/economy/2011/11/03/360185/30-corporations-no-taxes/#.TrKneqWj94s.mailto

These companies, whose pretax U.S. profits totaled $160 billion over the three years, included: Pepco Holdings (–57.6% tax rate), General Electric (–45.3%), DuPont (–3.4%), Verizon (–2.9%), Boeing (–1.8%), Wells Fargo (–1.4%) and Honeywell (–0.7%).

While the poor are unable to support themselves and thus get a break on their taxes, why are megacorporations like GE not only not paying any taxes, but actually paying a rate of nearly NEGATIVE 50%?

Edited November 3, 2011 by cybercoma

Shady · November 3, 2011

http://thinkprogress.org/economy/2011/11/03/360185/30-corporations-no-taxes/#.TrKneqWj94s.mailto

While the poor are unable to support themselves and thus get a break on their taxes, why are megacorporations like GE not only not paying any taxes, but actually paying a rate of nearly NEGATIVE 50%?

Because of tax loopholes and write offs like green energy subsidies.

Michael Hardner · November 3, 2011

You know - all governments give subsidies and perks to corporations to employ people but you have to wonder how effective this tactic is.

I'd like to see better public visibility of the effectiveness of said perks: treat them like projects and see what the results are.

As it is, we're cutting taxes for corporations and it seems to me that the jobs still are going away.

cybercoma · November 3, 2011

The middle class is being killed. Plain and simple. They support the poor, who are having trouble supporting themselves and arguably deserve a break from taxes until they get on their feet. However, now we have them supporting the rich as well. To top it off, they're being nickel and dimed with myriad fees that didn't exist in the past everywhere they turn. I'm not sure what needs to change, but something has to change or we're going to end up with a very dichotomized society when the middle class disappears.

blueblood · November 3, 2011

Because of tax loopholes and write offs like green energy subsidies.

And this is why we have advocation for a flat tax. No write offs, just a low rate.

jacee · November 3, 2011

... these companies generated so many excess tax breaks that they reported negative taxes (often receiving outright tax rebate checks from the U.S. Treasury), totaling $21.8 billion. These companies’“negative tax rates” mean that they made more after taxes than before.

$21.8b in tax refunds for already profitable corporations.

Something wrong there!

cybercoma · November 3, 2011

And this is why we have advocation for a flat tax. No write offs, just a low rate.

There should absolutely not be a flat tax. A lower income family spends a much higher percentage of their income on necessities like food, clothing and shelter. A flat tax could cut into their ability to pay for necessities. Someone that has much more money has more ability to contribute without worrying about cutting into their ability to pay for necessities, hence the progressive tax system we use. The problem is all the credits and loopholes. The tax system needs to be simplified.

cybercoma · November 3, 2011

... these companies generated so many excess tax breaks that they reported negative taxes (often receiving outright tax rebate checks from the U.S. Treasury), totaling $21.8 billion. These companies’“negative tax rates” mean that they made more after taxes than before.

$21.8b in tax refunds for already profitable corporations.

Something wrong there!

Imagine what $21.8B in tax refunds could do in terms of poverty, education or health.

Why are people protesting again? I don't understand. Their message isn't clear. :rolleyes:

bush_cheney2004 · November 3, 2011

The middle class is being killed. Plain and simple. They support the poor, who are having trouble supporting themselves and arguably deserve a break from taxes until they get on their feet.

Oh great...more class warfare. Those selfish middle class bastards should give more to the poor as well. The poor, so righteous and deserving of everyone elses wealth. They are truly blessed.

However, now we have them supporting the rich as well. To top it off, they're being nickel and dimed with myriad fees that didn't exist in the past everywhere they turn. I'm not sure what needs to change, but something has to change or we're going to end up with a very dichotomized society when the middle class disappears.

Too bad...wouldn't be the first time. This "middle class" phenom is a relatively recent thing. But there have always been winners and losers.

bush_cheney2004 · November 3, 2011

There should absolutely not be a flat tax. A lower income family spends a much higher percentage of their income on necessities like food, clothing and shelter.

But the righeous poor gladly pay much higher sin taxes for booze and tobacco. Good thing illegal dope isn't taxed!

GostHacked · November 3, 2011

But the righeous poor gladly pay much higher sin taxes for booze and tobacco. Good thing illegal dope isn't taxed!

Think of the money that could be made on taxing it AND not needing to pay for all that stupid law enforcement legal prison revolving door stuff.

Shwa · November 3, 2011

And this is why we have advocation for a flat tax. No write offs, just a low rate.

I concur!

guyser · November 3, 2011

Good thing illegal dope isn't taxed!

Guess again !

Half of your states have a marijuana tax stamp law. Minnesota's is one of the worst.

msj · November 3, 2011

And this is why we have advocation for a flat tax. No write offs, just a low rate.

Any state can have a progressive tax system with no tax credits and no tax deductions to simplify their tax system.

This would be almost as simple as a flat tax yet be progressive.

As for no write offs - I wonder what you mean by this?

There are many complexities when dealing with business income - what is a write off? when should it be written off (for example, capital assets and amortization)? etc... And those are the easy ones.

bush_cheney2004 · November 3, 2011

Guess again !

Half of your states have a marijuana tax stamp law. Minnesota's is one of the worst.

How much tax revenue does such legal trickery generate? How much does the poor pay?

guyser · November 3, 2011

How much tax revenue does such legal trickery generate?

Dont know, I was just pointing out the error that you posted.

How much does the poor pay?

Same as the rich person and the middle class person

blueblood · November 3, 2011

Any state can have a progressive tax system with no tax credits and no tax deductions to simplify their tax system.

This would be almost as simple as a flat tax yet be progressive.

As for no write offs - I wonder what you mean by this?

There are many complexities when dealing with business income - what is a write off? when should it be written off (for example, capital assets and amortization)? etc... And those are the easy ones.

I meant deductions by write offs

bush_cheney2004 · November 3, 2011

Dont know, I was just pointing out the error that you posted.

Oh thanks....I can't wait to balance the budget with all that illegal dope tax.

dre · November 3, 2011

Oh thanks....I can't wait to balance the budget with all that illegal dope tax.

Yeah you really should get on it. Theres absolutely no sense in leaving large sectors in the economy untaxed and taxing others more, to replace the revenue that would have been generated.

If you kept alcholol illegal as well youre defecit would be 7,763,336,000 bigger than it is now!

bush_cheney2004 · November 3, 2011

Yeah you really should get on it. Theres absolutely no sense in leaving large sectors in the economy untaxed and taxing others more, to replace the revenue that would have been generated.

Great..I wil let the poor in my state know that you want to tax their food and clothing. Great idea!

If you kept alcholol illegal as well youre defecit would be 7,763,336,000 bigger than it is now!

Chump change to us....

dre · November 3, 2011

Great..I wil let the poor in my state know that you want to tax their food and clothing. Great idea!

Chump change to us....

The producers of food and clothing are already taxed, and those taxes are born by all those consumers anyways because they are rolled into prices.

Chump change to us....

Those are just excise taxes. Every liquor outlet in the US also pays income tax. Trust me this isnt chump change.

eyeball · November 3, 2011

Chump change to us....

Maybe the lost tax revenue is chump change, but add the money that would have been spent to keep it prohibited as well as un-taxed all this time and you'd be a good deal more broke than you already are.

bush_cheney2004 · November 3, 2011

The producers of food and clothing are already taxed, and those taxes are born by all those consumers anyways because they are rolled into prices.

Point of sale state taxes would be above and beyond that...a direct increase in price to the "poor". Go ahead and try to "VAT" or "GST" their asses. I'm sure they will appreciate that economic vision.