Nearly 2/3 of U.S. companies paid NO fed income taxes (1998-2005)

[ColbertWatcher]

DISCLAIMER: Another DUer posted this the other day and it has fallen off the "Greatest Page."

Can something be done to those companies that didn't pay their taxes? Or, is this another example of "the contracts were already signed"???

[Occam Bandage]

1. I'm pretty sure that their failure to pay taxes was entirely legal.

They pay accountants and have offshore offices for a reason.

[ColbertWatcher]

2. And I was going to put that one in there.

I always forget something in my polls!

[TahitiNut]

5. Of course it was legal. They don't buy legislators for nothin', ya know.

:shrug:

[Oregone]

6. "failure to pay" implies they had tax liability...

Which is not what the article suggests at all.

[Oregone]

3. Seems high. Though I wonder if they figured in S-Corps

Which would skew this, as they aren't supposed to pay taxes anyway. Thats the structure a lot of small businesses use.

Gotta include, well, its just good business practices often to run at no profit (which results in no tax). So its not always a bad thing. Id rather see a corporation make no profit, from investing in its workers and growth, then pay taxes on profit that will be shuttled to private shareholders.

I realize some of this could be corruption, but there are legit reasons corps don't always pay taxes

[stillcool]

4. they don't have to pay taxes...

if they take advantage of all the loop-holes. The IRS can go back as far as it wants and make me pay for any taxes I may not have paid, so they can do the same with any other person corporate or otherwise.

[tammywammy]

7. How many of those are small companies that made no profit?

Not all companies are huge conglomerates making millions?

[ColbertWatcher]

8. Good point, but how many of them are MEGA-CORPORATIONS! n/t

[tammywammy]

10. This is what the article reported (in the link you gave to the other thread)

"But many of the companies the report found had paid no tax were likely small businesses that pay other taxes. Generally, many small firms, because they do not have shareholders, are able to shift corporate income to individual income.

"Small businesses that are going to be liable for a lot of income tax are likely to use other tax forms so they only pay individual income taxes," said Eric Toder, a senior fellow at the Tax Policy Center."

http://money.cnn.com/2008/08/12/news/economy/corporate_taxes/

[ColbertWatcher]

13. "Many" and "likely" ?

"... many of the companies the report found had paid no tax were likely small businesses ..."

Nonetheless, how many weren't small businesses? Of the ones that weren't small businesses, how much money could be recouped if they did pay their taxes?

Also, http://en.wikipedia.org/wiki/Tax_Policy_Center#History">Wikip*dia says the Tax Policy Center is made up of "tax experts who had served in the Ronald Reagan, George H.W. Bush, and Bill Clinton administrations." I wonder if includes Phil Graham!? Or anyone else noted for the mess we're in now?

They say they're "non-partisan," but I'd rather see statistics from a real impartial party.

This kinda reminds me of the "Joe" the "plumber" talking point about how he was going to have to pay more in taxes if he was going to make more than $250,000 at the business he didn't own. The GOP-controlled media has framed this into all hypothetical situations and doubt and fear and uncertainty.

For once I'd like to see giant corporations pay their fair share.

One more thing: two-thirds could be a very big number, and--if it is as you say it is--I have no problem giving a pass to small businesses as long as the big ones pay theirs.

[aikoaiko]

9. legally or illegally paid no taxes?

there is a big difference. If they reinvested profits into the business and after normal deductions didn't owe any taxes, then whats the problem?

[Oregone]

11. Much to do about nothing.

[tammywammy]

12. And investing in your own business is the smartest thing a business owner can do. n/t

[1]

14. the answer is... 2/3 of us companies did not make enough money to incur a tax liability...

therefore, no tax owed.

go back and research what the top 1% paid in taxes, and then get back to the thread.

you will be amazed.

[ColbertWatcher]

15. All of the companies were small businesses?

I don't think so.

As far as small businesses "not" paying their taxes I could care less. But when a mega corporation gets away with not paying their taxes, that's criminal.