General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCorporations paying ZERO taxes, plus getting million$ from the IRS (taxpayers...you & me)
...As Jack Lessenberry at the Metro Times writes: "Most lawmakers don't give a damn about what the voters need or want, and are only fixated on pleasing the superrich in order that they can get jobs from them when their terms are up."
So is Congress primarily representing themselves? And is it because most Americans realize this, that's why Congress's approvals ratings have been at all-time lows? Probably...
Senator Bernie Sanders (I-Vermont) sounds more like Elizabeth Warren than Hillary Clinton: "At a time when we have massive wealth and income inequality, and when corporate profits are soaring, it is an outrage that many large, profitable corporations not only paid nothing in federal income taxes last year, but actually received a rebate from the IRS. Instead of balancing the budget on the backs of the elderly, the children, the sick and the poor, as the Republicans in Congress have proposed, we need a tax system that demands that large, profitable corporations and the wealthy start paying their fair share in taxes."
Sanders was commenting on a new report by Citizens for Tax Justice, which detailed how many of the biggest and best-known corporations in America pay little or no federal income taxes, and said the report underscores the need to close corporate tax loopholes. (Will we ever hear how Hillary Clinton stands on this issue, and what her proposals might be?)
As examples, Citizens for Tax Justice has found that:
*Media giant Time Warner paid nothing in federal income taxes last year when it received a rebate of $26 million from the IRS, even though it made $4.3 billion in U.S. profits.
*CBS made $1.8 billion in U.S. profits last year, but instead of paying federal income taxes, it received a rebate from the IRS of $235 million.
*Xerox made $629 million in U.S. profits in 2014, but received a tax rebate of $16 million from the IRS.
*Prudential Financial made $3.5 billion in U.S. profits last year, but instead of paying federal income taxes, it received a tax rebate of $106 million from the IRS.
*The toy maker Mattel made $268 million in profits last year, but received a tax rebate of $46 million from the IRS.
*Priceline.com not only paid nothing in federal income taxes last year, it received a tax rebate of $9 million, even though it made $73 million in profits last year.
*Pacific Gas and Electric not only paid nothing in federal income taxes last year, it received a tax rebate of $84 million from the IRS, even though it made $1.8 billion last year.
*Wireless technology maker Qualcomm made $3.2 billion in U.S. profits last year, but instead of paying federal income taxes, it received a refund from the IRS of $98 million.
*General Electric made over $5.8 billion in profits in the U.S. last year, but paid just 0.9 percent of that amount (less than 1 percent) in federal income taxes.
*Jetblue Airways made $615 million in U.S. profits last year, but paid just 0.4 percent of that amount (less than half of 1 percent) in federal income taxes.
So when we hear people like Stephen Moore at the conservative think tank Heritage Foundation claiming the U.S. has the highest corporate tax rate in the world, the actual "statutory" tax rate has little bearing on the actual "effective" tax rate corporations are actually obligated to pay, because of all the loopholes that members of Congress have allowed them on behalf of their campaign donors and corporate lobbyists. People such as Senator Bernie Sanders would like to change this "pay for play" in Washington (More on this further below in this post).
And yet, like big cry babies, we keep hearing the GOP politicians complaining that high taxes are keeping these "job creators" from creating jobs (here in America) while the stock markets have been hitting all-time record highs, as corporate profits have also been hitting all-time record highs ($1.8 trillion after-taxes last year) and they've done this year after year. These multinationals have trillions of dollars stashed overseas, but they won't invest in America and pay taxes to fix our infrastructure and create jobs (Infrastructure spending is currently at a record low in the U.S.) How "patriotic" can a "multinational" company really be when their profits are "global"?...
http://www.economicpopulist.org/content/studies-show-congress-favors-rich-5733#comment-45714
What a freakin' racket. This is a major way the "game is rigged." And this is a major reason to support Bernie Sanders.
This HAS to stop.
We are essentially paying corporations to buy our govt & profit from it, while average Americans pay all the taxes, as they are sending our jobs overseas...
Go Bernie!!!!!!!!!!!!!
Enthusiast
(50,983 posts)Check out this video of Stiglitz.
RiverLover
(7,830 posts)I'm so grateful Stiglitz is getting airtime & this message out there. Trickle Down has failed us, time to move on. Move back to being a great nation who works for the betterment of ALL.
Enthusiast, did you see his interview with Salon? The whole interview is of course insightful & interesting, but here's what he says about the TPP~
No, Ive actually heard several things that have made me more adamant in my opposition. Ive talked to the health negotiators around the world. Ive talked to people whove been involved in the arbitration process as part of the investment agreements. Even people who are arbitrators say the whole system is corrupt, that its a very expensive system, that therefore creates an un-even playing field with big corporations with big, deep pockets can get access to have recourse, whereas smaller firms cant. That American firms can re-locate or do their investments in the United States as a subsidiary sue the U.S. government in ways that they could not if we didnt have that trade agreement. In other words, what were doing is changing the legal structure for the United States, not only for foreign firms. Because an American firm can become an American firm overnight. So this is a very big deal.
Its not just a trade agreement, its a really major change in a legal structure. And I dont think it should be taken lightly. I dont think it should be adopted on a take-it-or-leave-it basis, thats associated with fast-track. I think each of these issues themselves, need to be debated, voted on separately. The bottom line is, if anything, Ive been more resolved in my opposition.
http://www.salon.com/2015/04/29/we_have_a_distorted_economy_joseph_stiglitz_sounds_off_on_inequality_the_tpp_and_2016/
Enthusiast
(50,983 posts)MisterP
(23,730 posts)raccoon
(31,119 posts)K&R
Although they do care when figuring out how to spin their campaigns to the voters.
Once elected though, its all work, work, work... to pay back favors for campaign donations.
1939
(1,683 posts)Every time that I see these threads, I check the information in Value Line. For those who do not know about it, Value Line is an investor information service that tracks the 1750 largest stocks traded. Each stock is given a capsule history of earnings, profits, and expenses over the last ten years. Two of the items of information are the amount of federal taxes paid and the percentage of the taxes on the net profits. Since these are investor guidelines, I have to assume that they are not being falsified to cover up government largesse to corporations.
General Electric: General Electric's taxes have varied widely over the last ten years. In 2014, they were 13% of profits. In 2009, the were Zero. In 2011, they were 27.4% of profits.
Pacific Gas & Electric: Low of 23.9% in 2012. High of 37.6% in 2005.
Xerox: Low of 21.8% in 2006. High of 30.2% in 2005.
I am not sure what to make of this. Are these numbers compared to the OP numbers "apples and oranges"? Are the "rebates" refunds of overpaid taxes? I am sure that Value Line is trying to provide accurate info and not just make a "oh woe is me" pitch for these corporations.
Why the discrepancy?
RiverLover
(7,830 posts)I took a quick peek at Mattel's annual reports. I picked Mattel because they are relatively small and understandable business. Not like the financial companies listed in the OP.
Looks like they ordinarily have 'Provision for Income Taxes-Domestic' in the 15% -22% range.
But in 2014 there is a refund/rebate of prior years taxes after audits.
Without rooting around in the footnotes for details It seems that there was some merger/acquisition a few years ago that resulted in some appeals process with the IRS regarding several year's taxes and that got settled in 2014. So, even though they made money in 2014, they ended up with a refund.
luckykate54
(50 posts)If we have been letting them get away with this, then its our fault. Its time for the people to rebel against our corrupt representatives.
This is a joke! To bad the joke is on hard working people trying to make ends meet. Until I read this article I didn't know this was happening.
Faux pas
(14,690 posts)'corporations are people' they need to pay their fair share like the rest of we, the people.