Jump to content

13 Mindblowing Facts About Americas Tax Dodging Corporations


Recommended Posts



A judicious writer avoids adjectives like "mindblowing," especially when covering political or economic issues. But no other word seems to describe the stunning reality of corporate taxation in modern America, which cries out for the italics-heavy, exclamation-point-driven format made famous by Ripley's Believe It or Not.

Stylistic overkill? Read these thirteen facts and you may change your mind.

 

1. We're told we can't "afford" full Social Security benefits, even though closing corporate tax-haven loopholes would pay for Obama's "chained CPI" benefit cut more than 10 times over!

 

Abusive offshore tax havens cost the US $150 billion in lost tax revenue every year (via FACT Coalition). That's $1.5 trillion over the next 10 years.

The "chained CPI" cut, proposed by President Obama and supported by Republicans, is projected to "save" a total of $122 billion to $130 billion over the same time period by denying benefits to seniors and disabled people.

It's true. "Serious" politicians and pundits are demanding that ordinary people sacrifice earned benefits, while at the same time allowing corporations to avoid more than ten times as much in taxes.

 

2. Corporate tax rates are near their 60-year low, even though profits are at a 60-year high!

Need we say more?

 

(Source: Americans for Tax Fairness.)

 

3. Wells Fargo got $8 billion in tax breaks, even as executives at its subsidiary Wachovia avoided indictment for laundering money for the Mexican drug cartels!

 

That's right. Wells Fargo paid a negative tax rate of -1.4 percent between 2008 and 2010 while Wachovia, a Wells Fargo subsidiary, admitted to laundering more than $378 billion for Mexican drug gangs.

We're talking about crazed killers like "El Loco" and gangs like "Los Zetas" -- gangs who cut people's heads off and toss them out onto disco dance floors or display them in the town square.

Wachovia bankers ignored repeated warnings from law enforcement officials, and continued to launder money for cartels that have murdered tens of thousands.

And yet no criminal indictments were handed down because, as a Senate investigator told Bloomberg News, "There's no capacity to regulate or punish them because they're too big to be threatened with failure."

 

4. Some other huge corporations paid less than nothing, too.

 

Pepco Holdings (-57.6 percent tax rate)
General Electric (-45.3 percent)
DuPont (-3.4 percent)
Verizon (-2.9 percent)
Boeing (-1.8 percent)
Honeywell (-0.7 percent)

 

(Source: Citizens for Tax Justice)

 

5. The amount of money US corporations are holding offshore is an estimated 1.6 trillion dollars!

 

Rather than tax these profits the way other countries do, corporate politicians are promoting a tax "repatriation" break that would let corporations "bring this money home" while paying even less than their currently low rates.

They tried that in 2004 and it didn't create any jobs. In fact, corporations took the tax break and then fired thousands of people. What "repatriation" did do is line a lot of wealthy investors' pockets.

So, naturally, they want to do it again.

 

6. One building in the Cayman Islands is the official location of 18,857 corporations!

 

According to the Government Accountability Office, a five-story building called "Ugland House" is home to nearly 20,000 corporations. That's impressive, especially for such a small edifice. (Perhaps it has supernatural half-floors and space-time defying "mind tunnels" like the office in Being John Malkovich.)

 

While impressive, Ugland House's distinction pales next to that of 1209 North Orange Street in Wilmington, Delaware. According to one investigation, that address is home to 217,000 corporations.

That's because Delaware has very generous tax rules -- and, as a result, is home to more than half of all the corporate subsidiaries in the United States. That's startling, since only 1/342th of the nation's population lives in that state (917,092 residents, out of a national total of 313,914,040, according to the latest census results).

 

7. Conservatives complain about the "official" corporate tax rate in this country, but corporations actually pay roughly one-third of the official rate in actual taxes.

 

The official, or "statutory," corporate tax rate is 35 percent. But the actual rate paid by American corporations is only 12 percent, less than that paid by many middle-class Americans.

(Source: The FACT Coalition.)

In fact, US Corporations pay less tax as a percentage of the GDP than corporations in Canada. Or Japan ...

... or South Korea. Or Norway. Or Luxembourg, New Zealand, Israel, the Czech Republic, Sweden, Belgium, Switzerland, the United Kingdom, Denmark, Finland, and Italy.

(Source: OECD StatsExtract interactive database.)

 

8. Corporations used to pay 30 percent of Federal taxes, and now they pay less than 7 percent!

 

That's because the corporate tax rate has plunged since Dwight D. Eisenhower was President and is now the lowest it's been in modern history.

(Source: FACT Coalition.)

 

9. Big corporations paid $216 million to Congress and got $223 billion in tax breaks!

 

As Citizens for Tax Justice and USPIRG reported, 280 large and profitable corporations contributed $216 million to Congressional campaigns over four election cycles and got nearly a quarter of a trillion dollars in tax breaks.

That's a terrific investment for them -- a return of more than a thousand to one -- but it's a bad deal for the American people.

 

10. We don't even know who owns some corporations, even though that makes it easier to evade taxes, dodge creditors, avoid paying alimony or child support, and even fund terrorism!

 

Here are some examples of investments that might represent a terror threat. Corporate interests are blocking disclosure rules that would help protect our national security.

11. Bank of America committed foreclosure fraud, was bailed out by the government, and then paid no taxes on $4.4 billion in profit!

 

That's right. In 2010, while BofA was negotiating a sweet settlement deal for its foreclosure fraud, it paid nothing in taxes. (Source: FACT Coalition.) Zero, on $17.2 billion in offshore earnings. (Source: Americans for Tax Fairness.)

Its $4.1 billion tax break came on the heels of the bank's taxpayer-funded bailout, immunity from prosecution for its criminal employees, and a cushy government settlement for its foreclosure fraud.

Now David Dayen reports that the bank has apparently continued to defraud customers in violation of its government settlement. Whistleblowers have stated in affidavits that they were "told to lie" to customers, continued to deceive homeowners before foreclosing on them, and flipped customers to new servicing companies to invalidate previous homeowner agreements.

 

12. What they call "tax reform" would actually prevent our elected representatives from giving businesses financial incentives to improve our lives!

 

The word "reform" is an honorable one that's been put to some dishonorable uses lately. "Entitlement reform," for example, is merely a euphemism for gutting Social Security and Medicare.

Similarly, corporate-backed politicians are pushing a formula for permanent corporate tax breaks and calling it "tax reform." They insist their "reform" be "revenue neutral" and say it will "broaden the base while lowering the rate."

 

Here's an English translation: The current, unsustainably low rates for corporations would be made permanent, while eliminating many tax deductions in the name of "simplification."

Here's what that really means: The domestic tax credit for creating jobs? Gone. Tax breaks for protecting the environment with clean energy, rather than harming other people's health and leaving a mess for the rest of us to clean up? Gone.

All in all we'd lose dozens of important policies that make our lives better, while permanently fixing corporate taxes at today's cushy giveaway rates.

 

"Reform"? Ripoff is more like it.

 

13. Despite their greed, mismanagement, and freeloading, tax-dodging corporations are using shell organizations like "Fix the Debt" and "the Committee for a Responsible Federal Budget" to tell ordinary Americans they have to sacrifice even more to preserve corporate wealth!

 

These organizations are using the heads of failed banks -- people like Chase's Jamie Dimon and Lloyd Blankfein of Goldman Sachs -- to dispense "advice on the economy." That's like getting navigation tips from the captain of the Exxon Valdez.

 

(Tax breaks for Exxon Mobil: $4.1 billion between 2008 and 2010. The company paid no taxes at all in 2009.)

 

These executives and their paid spokespeople tell the rest of us we need to "sacrifice" and "tighten our belts" so that their party can go on forever. And too often they're treated as credible sources, rather than as corrupting influences on our public life.

 

It's all true -- and there are many more astonishing facts to be found in the world of corporate taxation. To fix the economy more people will need to learn about them - and demand that they be changed.

 

 

Link to comment
Share on other sites

1. If it's legal it's not tax dodging. It's no different that taking deductions on your personal taxes.

 

2. Raise the corporate tax rate and more businesses will move offshore taking their jobs with them as other governments lure them with lower tax rates and more beneficial legislation OR they simply pass the cost onto you anyway.

 

Either way, you'll pay the difference so choose your poison wisely.

Link to comment
Share on other sites

Give it a couple of days. All of the corporate apologists out there will come up with a thousand reasons why all of this is just fine.



1. If it's legal it's not tax dodging. It's no different that taking deductions on your personal taxes.

 

2. Raise the corporate tax rate and more businesses will move offshore taking their jobs with them as other governments lure them with lower tax rates and more beneficial legislation OR they simply pass the cost onto you anyway.

 

Either way, you'll pay the difference so choose your poison wisely.

 

See?

Link to comment
Share on other sites

 

1. We're told we can't "afford" full Social Security benefits, even though closing corporate tax-haven loopholes would pay for Obama's "chained CPI" benefit cut more than 10 times over!

LOL, now the chained CPI is "Obama's" idea.

 

 

2. Corporate tax rates are near their 60-year low, even though profits are at a 60-year high!

Need we say more?

Yes, please. More would be better because your biased link doesn't even prove this claim to be true.

 

3. Wells Fargo got $8 billion in tax breaks, even as executives at its subsidiary Wachovia avoided indictment for laundering money for the Mexican drug cartels!

Didn't Wells Fargo lose money during the time you quoted (2008-2010)?

So, you want them to pay income taxes even when they LOST money?

You're not too bright, are you?

 

4. Some other huge corporations paid less than nothing, too.

 

Pepco Holdings (-57.6 percent tax rate)

General Electric (-45.3 percent)

DuPont (-3.4 percent)

Verizon (-2.9 percent)

Boeing (-1.8 percent)

Honeywell (-0.7 percent)

Once again, these companies LOST money. Math isn't exactly your strong suit, is it?

 

5. The amount of money US corporations are holding offshore is an estimated 1.6 trillion dollars!

Companies and individual keep money earned off shore, in those countries because of moronic liberal tax policies.

You penalize companies for repatriating money earned offshore, then whine that they don't repatriate those monies.

How stupid are you? (That's a rhetorical question because we're all quite aware of the level of your ignorance)

 

6. One building in the Cayman Islands is the official location of 18,857 corporations!

I've been there, it's actually an impressive building.

What's your complaint, that the people running Grand Cayman are smarter than you?

 

7. Conservatives complain about the "official" corporate tax rate in this country, but corporations actually pay roughly one-third of the official rate in actual taxes.

Not quite true, and of course you ignore the other tax burdens placed on American Corporations like State taxes and regulatory environment.

While your biased source says that our corporations pay an effective tax rate of 12%, the World Bank produced a report last year that says our effective corporate tax rate is actually 27.5%. More than double your claim.

Take this new World Bank study, for example. They looked at the effective tax rates paid by a typical company in 183 countries around the globe. They found that 164 countries have lower effective corporate tax rates than the U.S.

The global average rate, 16%. Our average rate, nearly 28% [27.6%].

Only New Zealand, Chad and a handful of much smaller countries had higher rates than the US.

[citation: World Bank/PWC “Paying Taxes 2012”]

Another study by British economists at Oxford University compared the average tax rates for a range of industries in 19 of the biggest economies in the world.

The US didn’t stack up so well.

The average rate for industries in the US, 34.9%.

 

But industries in countries such as Korea (19.8%), China (22.4%), Canada (25.7%), United Kingdom (26.3%), Germany (27%), and India (29.5%), all paid lower rates. Only Japan had a higher rate.

[citation: Devereux, et.al. (2011)]

 

And a study by American economists comparing the effective tax rates of large businesses in 15 countries found that US companies tended to pay among the highest tax rates.

Companies in places like Sweden (18%), Taiwan (18%), France (23%), and South Africa (25%), all paid lower effective tax rates than US firms (28%).

Only Japanese companies (36%) paid a consistently higher tax rate than those in the US.

[citation: Markle/Shackelford (2011)]

Oh, and don't forget that Japan just lowered their Corporate rates.

 

 

8. Corporations used to pay 30 percent of Federal taxes, and now they pay less than 7 percent!

That's because they were looking at dates within a recession, you idiot.

Compare what they paid during 2008-2010 with other recessions and you'll see similiar numbers.

Your source didn't tell you that, did they? Oops.

 

9. Big corporations paid $216 million to Congress and got $223 billion in tax breaks!

Looks like they are getting what they paid for under Obama, and the Democrats who ran Congress.

 

10. We don't even know who owns some corporations, even though that makes it easier to evade taxes, dodge creditors, avoid paying alimony or child support, and even fund terrorism!

We don't know who you are, therefore you might be funding terrorism!

See how stupid that sounds?

 

11. Bank of America committed foreclosure fraud, was bailed out by the government, and then paid no taxes on $4.4 billion in profit!

Did they give Barry a big wet sloppy kiss? The fact that they paid no taxes on this $4.4b in profit, is because they carried over a much larger loss in a previous year.

Again, this was a law passed by Democrats and Obama. Why are you whining?

 

12. What they call "tax reform" would actually prevent our elected representatives from giving businesses financial incentives to improve our lives!

This is just pure ignorance and stupidity.

 

13. Despite their greed, mismanagement, and freeloading, tax-dodging corporations are using shell organizations like "Fix the Debt" and "the Committee for a Responsible Federal Budget" to tell ordinary Americans they have to sacrifice even more to preserve corporate wealth!

Wow, glad you're on our side to make sure this doesn't happen.

 

Thanks for teeing this up for me, so I could kick your ass with the facts.

Which Corporate Giants Pay The Most In Taxes?
Link to comment
Share on other sites

Give it a couple of days. All of the corporate apologists out there will come up with a thousand reasons why all of this is just fine.

 

 

See?

 

What I see is someone who doesn't understand simple economics and business. :D Take an economics course, run a business and call me in the morning retardo.

Link to comment
Share on other sites

Give it a couple of days. All of the corporate apologists out there will come up with a thousand reasons why all of this is just fine.

Personally, I think we should tax all companies at 95%.

Fuck 'em, you don't need a job.

 

What I see is someone who doesn't understand simple economics and business. :D Take an economics course, run a business and call me in the morning retardo.

What good would it do for him to take an economics class? The information would be so far over his head, he'd never comprehend it anyway, and he'd claim the teacher flunked him because he continually proved the professor wrong in class.

Link to comment
Share on other sites

Personally, I think we should tax all companies at 95%.

Fuck 'em, you don't need a job.

 

What good would it do for him to take an economics class? The information would be so far over his head, he'd never comprehend it anyway, and he'd claim the teacher flunked him because he continually proved the professor wrong in class.

:lol::lol: The stupidity of the left is mind numbing.

Link to comment
Share on other sites

Personally, I think we should tax all companies at 95%.

Fuck 'em, you don't need a job.

 

 

What good would it do for him to take an economics class? The information would be so far over his head, he'd never comprehend it anyway, and he'd claim the teacher flunked him because he continually proved the professor wrong in class.

Their brain doesn't ever get past rich guy has more money than me, must be punished!!!

 

Personally I don't think corporations should pay any taxes. There is enormous amount of revenue generated from incomes of the people that are employed because they exist.

Link to comment
Share on other sites

Post #4. Item by item.

You're welcome.

 

So an article from FORBES magazine is truth? FORBES magazine which is the guide book to the absurdly wealthy? Why would I believe anything these elitist scumbags present as fact? Give me a non-partisan source.

Link to comment
Share on other sites

 

So an article from FORBES magazine is truth? FORBES magazine which is the guide book to the absurdly wealthy? Why would I believe anything these elitist scumbags present as fact? Give me a non-partisan source.

 

 

Your grasp of economic matters is astounding. I read Forbes and WSJ daily with online subscriptions and by no means am I absurdly wealthy. You read those publications along with multiple others in order to be an informed investor and to do due diligence.

Link to comment
Share on other sites

So school us. Instead of just puking up insults tell Skews 13 why he is wrong.

 

I dare you.

They can't. They're apologists and ass licks with the usual excuses. It becomes redundant schooling these losers on the facts of life. Neither one of these employees have ever run a business like I currently do, and get there talkingpoints from the radio. Only an idiot and a fool thinks it's ok to bail out banks and corporations and then allow them too pay little or no taxes. Since they seem to be so sympathetic to them, let them send their employee paychecks to them at the end of the week. If they don't feel that's enough they are always free to send them their tax returns also. If it's one thing I don't need as a successful business owner is advice from two employees who will be working for somebody else the rest of their pathetic lives.

Link to comment
Share on other sites

Demdopes should read the WSJ. They might learn something. Corp. have to follow the tax code. All of the deductions are legal. When you tax a corp. the corp. passes the tax right on back to the consumer. Tax a company high enough and they leave the country for a country where taxes are lower. It may come as a surprise to the community activist, but companies must make a profit. Companies employ people who produce a good or provide a service. One factor of the price of a product or service is what the company must pay in taxes. Libs should read financial material. They might get an inkling into how an economy functions.

 

Link to comment
Share on other sites

1. If it's legal it's not tax dodging. It's no different that taking deductions on your personal taxes.

 

2. Raise the corporate tax rate and more businesses will move offshore taking their jobs with them as other governments lure them with lower tax rates and more beneficial legislation OR they simply pass the cost onto you anyway.

 

Either way, you'll pay the difference so choose your poison wisely.

 

You truly are a dick sucking CON slime ball.

 

What you said was spoken like a true CON. Just because something legal, in your mind it's moral. When the banks syphoned off over a trillion dollars from hard working Americans it was legal and you CON slime had no problem with it.

 

BTW dummy Obama proposed a cut to the corporate tax rate. Click the link sperm drinker. http://www.nytimes.com/2012/02/23/business/economy/obama-introduces-plan-to-cut-corporate-tax-rate.html?pagewanted=all&_r=0

Link to comment
Share on other sites

 

So an article from FORBES magazine is truth? FORBES magazine which is the guide book to the absurdly wealthy? Why would I believe anything these elitist scumbags present as fact? Give me a non-partisan source.

Forbes is a partisan source?

I love watching liberals panic when their world view gets challenged.

 

You should read Forbes sometimes. It might just educate you and you can stop being such a dumbass.

 

They can't. They're apologists and ass licks with the usual excuses.

Post #4.

Dumbass.

Link to comment
Share on other sites

 

 

Thanks for teeing this up for me, so I could kick your ass with the facts. Which Corporate Giants Pay The Most In Taxes?

 

You are quite an idiot Goofy. I clicked you link and it turns out that the third biggest corporate taxpayer Apple paid a tax rate of 17% but the corporate tax rate is 35% you stupid pig. Corporations don't pay any other taxes or fees you baby raping mouth breathing sperm gulper.

 

So what do you think, is $6 billion a lot, or a little to pay Uncle Sam? After all, Apple did chalk up $39 billion in net income for 2012. That means that it paid about 17% of its income to its home government.

 

That’s about as much as President Obama’s 18% personal income tax rate for 2012, but a far cry from America’s standard corporate tax rate of 35%.

 

You may want to try actually reading the articles to which you post links. Oops, I almost forgot, you are barely literate.

Link to comment
Share on other sites

 

So an article from FORBES magazine is truth? FORBES magazine which is the guide book to the absurdly wealthy? Why would I believe anything these elitist scumbags present as fact? Give me a non-partisan source.

Some ultra libs here quote Forbes. So are they wrong or cherry picking?

Link to comment
Share on other sites

 

What I see is someone who doesn't understand simple economics and business. :D Take an economics course, run a business and call me in the morning retardo.

Being paid a dollar for every bed pan you clean out isn't running a business, mother-fker!! :D

Link to comment
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...