Most companies in US avoid federal income taxes

[Weester]

WASHINGTON - Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.

The study by the Government Accountability Office, expected to be released Tuesday, said about 68 percent of foreign companies doing business in the U.S. avoided corporate taxes over the same period.

Collectively, the companies reported trillions of dollars in sales, according to GAO's estimate.

"It's shameful that so many corporations make big profits and pay nothing to support our country," said Sen. Byron Dorgan, D-N.D., who asked for the GAO study with Sen. Carl Levin, D-Mich.

An outside tax expert, Chris Edwards of the libertarian Cato Institute in Washington, said increasing numbers of limited liability corporations and so-called "S" corporations pay taxes under individual tax codes.

"Half of all business income in the United States now ends up going through the individual tax code," Edwards said.

The GAO study did not investigate why corporations weren't paying federal income taxes or corporate taxes and it did not identify any corporations by name. It said companies may escape paying such taxes due to operating losses or because of tax credits.

More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million U.S. companies paid no income tax, the GAO said. Combined, the companies had $2.5 trillion in sales. About 25 percent of the U.S. corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts.

more:


Most companies in US avoid federal income taxes - Yahoo! News

[BLACK6PACK]

LLC's and S Corporations are specifically set up to avoid paying double taxes, so this sounds like a bunch of BS to me.

Say I set up a company, and want to shelter my wife and kids from being sued out of house and home because some nutcase brings a suit against me. I set up an S corp so they can only sue the corporation, and (forget exactly which one pays taxes) either the S-corp pays the taxes or the money made by the S-corp, of which I completely own, is transferred to me and I pay all the taxes. Otherwise I completely own a company. It profits $100,000. The company pays taxes. $65k left over. I get the $65k and then I pay 35% in taxes. Now after all is said and done, the $100k I just made by busting my butt and taking the risk ends up only being $42k in my pocket.

[henschman]

simplest answer: go to a tax system that doesn't tax corporations. all it does is inflate prices, so individuals end up paying the taxes anyway. but of course most people don't understand that simple fact, and feel better when they are indirectly and unknowingly taxed this way instead of having a direct tax increase, even though they end up paying the same either way. the main reason people think that way is because no economics at all are taught in government schools. you pretty much have to be a college business major to get any exposure at all to basic economic principles. the vast majority of this country knows very little about economics, yet it is currently the biggest political issue people care about. wtf? no wonder people buy into complete BS shams that economists laugh at, like stimulus packages, gas tax holidays, $5000 checks to every person, bailouts of failed businesses, creating false incentives through subsidies, and of course cutting taxes while wildly increasing spending. If they studied the facts a little bit, people might also discover the terrible truth about the federal reserve system and the harmful effects of paper money. And they might even start electing people who actually know about economics and have actual solutions, instead of all the crack-populist BS "solutions" politicians come up with in election season.

[BlownZ]

substitute the words common sense for every place you posted economics and that post still makes sense.

[faster]

Originally Posted by BLACK6PACK

LLC's and S Corporations are specifically set up to avoid paying double taxes, so this sounds like a bunch of BS to me.

Say I set up a company, and want to shelter my wife and kids from being sued out of house and home because some nutcase brings a suit against me. I set up an S corp so they can only sue the corporation, and (forget exactly which one pays taxes) either the S-corp pays the taxes or the money made by the S-corp, of which I completely own, is transferred to me and I pay all the taxes. Otherwise I completely own a company. It profits $100,000. The company pays taxes. $65k left over. I get the $65k and then I pay 35% in taxes. Now after all is said and done, the $100k I just made by busting my butt and taking the risk ends up only being $42k in my pocket.

I and my wife own an "S" corp and this is how it works;

The company in and of itself pays no taxes and takes no credits. It can take in all the money it wants and pay no tax on it but there are also no deductions for expenses.


I pay myself and my wife who work and run the business.

I only pay tax on what I take out for personal income.

We pay social security employee deductions of 6.45 and the business matches it.

We pay medicaid 1.45% and the business matches it.

We pay unemployment insurance of 3%. Even though I can't fire or lay myself or my wife off and ever collect it.

We pay federal income tax at the rate based on what we take out.

Total tax: 13% for Social Security
3% for Medicaid
3% for Unemployment
18% for Federal Income Tax
Total of 37% on every dollar I earn.

That does not take into consideration the sales tax I pay on fuel and supplies for the business that gets added onto that 37%.

So I'm guessing I pay $.40+ on every dollar I earn to uncle chooch.
Now because I don't have any employees that are not corporate owners I do not have to have workers comp which can be as high as $.48 of every dollar grossed on a job.

Wecome to corporate America!

Now we can also take out dividends equal to the amount we take out for income but only have to pay Federal Income Tax on that.

An LLC has to pay tax on itself but can take deductions for expenses.
My accountant has run it both ways and the S corp is better for our situation.

Mikey

[Mac in SD]

Here's a related bulletin for you, weepy:

Virtually All Second-rate Museums Avoid Federal Income Taxes, too.

How's that fair?

[1QWIK6]

Originally Posted by Mac in SD

Here's a related bulletin for you, weepy:

Virtually All Second-rate Museums Avoid Federal Income Taxes, too.

How's that fair?

A related picture for you Mac

[Mac in SD]

Originally Posted by 1QWIK6

A related picture for you Mac

WTF are you talking about, PWICK?

Oh. Weepy's old "read", I guess. Got a list of recommended readings, do ya'? Let's have 'em.

Leave DC and Marvel off your list, 'kay?

[XxDarkSidexX]

money money money money MONEY!
YouTube - George Bush Has Stolen $2,300,000,000,000.00 From U.S. Tax Payers

dont worry we can't even count right lol, "its a disgrace"
XxDarkSidexX

[UNGN]

Originally Posted by XxDarkSidexX

money money money money MONEY!
YouTube - George Bush Has Stolen $2,300,000,000,000.00 From U.S. Tax Payers

dont worry we can't even count right lol, "its a disgrace"
XxDarkSidexX

Talk about Propaganda. Is that a "code Pink" recruiting video? The video mentions 2.3 Trillion, but then talks about a few million here and maybe a Billion or two there.

Does the entire defense budget over Bushes 8 years = 2.3 Trillion, and therefore is "stolen" from the US?

Rummy was trying actually cut the budget and the video makes him the face of "Bush stealing money".

Having a Commie lover in there like Harkin really lends a lot of credibility to the video, too... not. Maybe if he was wearing his Che T-shirt....

The bit at the end about Nuclear weapons, shows where the propaganda is trying to point you. Nuclear weapons are relatively cheap compared to conventional weapons, so having 10,000 of them costs less than say a couple aircraft carriers. Wars would be a hell of lot cheaper if we just used our Nukes.

So it's can't be the money that's the problem....

[Gothmog]

Originally Posted by XxDarkSidexX

money money money money MONEY!
YouTube - George Bush Has Stolen $2,300,000,000,000.00 From U.S. Tax Payers

dont worry we can't even count right lol, "its a disgrace"
XxDarkSidexX

You are wasting your time. These republicans will scream all day if some resident of New Orleans beats the govt for $1000, but when 10 billion or more go missing or is stolen or taken in corruption, these same people will fight tooth and nail to block any kind of investigation.

[Weester]

Originally Posted by Mac in SD

Here's a related bulletin for you, weepy:

Virtually All Second-rate Museums Avoid Federal Income Taxes, too.

How's that fair?

ROTFL................Shows what you knowz..............

We pay taxes as do most of the museums here in San Diego, we are all privately owned!!

And FYI, we are the largest RESEARCH Museum in San Diego....LOL!
Come on in and enjoy one of our EDUCATIONAL Classes, you might learn a thing or two...............

[salvageV6]

From pathological LIARS, I think not.

So what does your Rabbi, research scientists, and Museum Director think about your lying lefty internet debating style?

Invite them in for some real education.

They might learn a thing or two.

[Weester]

Originally Posted by salvageV6

From pathological LIARS, I think not.

So what does your Rabbi, research scientists, and Museum Director think about your lying lefty internet debating style?

Invite them in for some real education.

They might learn a thing or two.

Pathological Liar??? ROTFL!!!

Whats the matter sloppage6, still upset about getting punked 3 YEARS AGO................

[UNGN]

Originally Posted by Weester

ROTFL................Shows what you knowz..............

We pay taxes as do most of the museums here in San Diego, we are all privately owned!!

And FYI, we are the largest RESEARCH Museum in San Diego....LOL!
Come on in and enjoy one of our EDUCATIONAL Classes, you might learn a thing or two...............

Weester, you are an idiot.

Your Musuem is a "non-profit organization" isn't it?

It could be owned by Warrren Buffet and still wouldn't pay any Income Taxes.

[Weester]

Originally Posted by UNGN

Weester, you are an idiot.

Your Musuem is a "non-profit organization" isn't it?

It could be owned by Warrren Buffet and still wouldn't pay any Income Taxes.

WE PAY TAXES!!!!!

[BLACK6PACK]

We Believe You!!! Not!!!!

[SGRIM]

That is a bunch of crap.... No matter how you stroke or word it if you gross more than $388K I believe you get the FOOT IN THE BUT for taxes...

What good is it to keep it in the corporation, the owners and or stock holders get dividends or pay themselves. Either way it gets taxed.

Look at this way, if nothing else it can't be spent unless taxes are paid....