Bank of America posts loss, gets ($1 Billion) tax benefit

[underpants]

After another money-losing year, Bank of America Corp. got the upper hand with Uncle Sam in 2010.

The Charlotte-based bank had no federal income tax expense for a second straight year and actually reported a tax "benefit" of nearly $1 billion. Also, the bank's billions in accumulated losses could reduce its taxes in future years, a tax expert said.

The bank says the reason is simple: Corporations pay taxes on their profits, and Bank of America posted a pre-tax loss of $5.4 billion in the U.S. in 2010.

That doesn't satisfy a group that has been staging protests at Bank of America branches around the country and crashed the bank's New York investor conference this month. The bank is an "aggressive tax dodger," said Ryan Clayton, a Washington-based organizer of U.S. Uncut. "We pay our taxes. Why don't they?"


Bank of America and other companies do avoid paying taxes on profits they make in overseas operations by reinvesting these proceeds overseas, instead of bringing them back home. Some business leaders recently have called for a lower tax rate on these earnings, a move they contend would encourage companies to bring these profits to the U.S.



Read more: http://www.mcclatchydc.com/2011/03/25/111077/bank-of-america-posts-loss-gets.html#ixzz1HiF9cDt3

[xchrom]

1. recommend

[FBaggins]

2. And to think... they're arguing with the Fed over whether or not they can boost their dividend

I could have sworn that dividends exist to pay out profits to the owners of the company.

[madmax]

3. We don't qualify for the loop holes

and the rest of the tricks they employ so we owe the 'gubamint'. :mad:

[Bill219]

4. We need to start calling them what they are...

No more pussyfooting around, any US Company or Corporation that engages in these offshore practices to avoid paying taxes is a TRAITOR

[BadgerKid]

5. Since when does "encouraging" companies do anything?

Clearly it works because of the overabundance of corporate-created jobs from which we are all benefitting to the tune of 0.0% unemployment rate.
:sarcasm:

[RB TexLa]

6. Why would we won't to discourage investment in the region the money was made?