Companies that pay no federal income tax on the rise

Companies that pay no federal income tax on the rise

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The Wall Street Journal reported that 69 percent of U.S. corporations were organized as nontaxable businesses in 2008, up from 24 percent in 1986, and that the percentage is actually higher when including partnerships and sole proprietors. Large companies are often structured as pass-throughs, with an estimated 60 percent of U.S. businesses with profits of $1 million comprising this category, the largest such percentage in any developed country.

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So You Think "The Rich" Aren't Paying There Fair Share"

To me it is facts like this that are the cause of occupy wall street. We have companies that are turning multi billion dollar profits and are paying no taxes. Also in the article federal corporate taxes make up only 1.3 percent of revenue. So the rest comes from the people. You might say the rich pay the majority of it, and they are also the ones getting all the money from the corporations that don't pay taxes. Yes both are true but then also the rich are paying a lower percentage in taxes then do the the rest of the 99 percent. So yet again hear is the poor paying to keep the rich rich.

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so i'm imagining that this all took off under bush jr? 2008...yup. and now this administration gets to pad their wallets.

reply to post by RedGolem

So the rest comes from the people.

Corporations Never Pay Taxes, Only People Pay TaxesHow do you people not understand this???? Any taxes levied are added to cost of production or delivery of service, and added to final cost.

Originally posted by DarthMuerte
reply to post by RedGolem

 

So the rest comes from the people.

Corporations Never Pay Taxes, Only People Pay TaxesHow do you people not understand this????

Any taxes levied are added to cost of production or delivery of service, and added to final cost.

edit on 11-1-2012 by DarthMuerte because: (no reason given)

Exxon Mobil pays taxes.

It's GE making capitalism look bad. They have an army of tax attorneys.

Interesting.

The article tells exactly where the taxes have gone...nothing but fear mongering and pandering.

An increasing number of U.S. companies don’t pay a dime in income taxes to the federal government because of a special structure that passes profits along to investors who then pay the taxes, according to a story in Tuesday’s Wall Street Journal.

It's not rocket science people. If I have a choice between getting profits via a corporation (at corporate tax rates), paying an army of accountants to reduce the taxes paid (expensive), or shuttling it to an investment and getting taxed on that...I know what I would do.

look - it's easy to say oh - the corporation isn't paying it's fair share.
but - take a breath.
if corporations pay taxes - exactly who or whom do you think would ultimately pick up the tab.

taxes taken from my paycheck are not legal in the sense of taxes should only be levied on capital gains (see U.S. constitution) - i do not make a profit from work - but rather it is a mutually agreed upon symbiotic relationship.

vote for RON PAUL - he understands how to finance government.
also read his book 'End the Fed'

reply to post by RedGolem


Is there a tax on share trades in the US?

Putting a tax on share trades makes companies pay tax, sure it also makes ordinary mum and dad investors pay tax to but much more iumportantly it makes the wealthy pay tax commesnurate with their wealth.

Whats the daily turnover of wall street? how much money owuld a 2% tax raise?

Originally posted by DarthMuerte
Any taxes levied are added to cost of production or delivery of service, and added to final cost.

Could you how this relates to the paying of income taxes?

Thanks to everyone who posted.
Please do post any other ideas you have or exsplain what would fix the problem.

Originally posted by RedGolem


To me it is facts like this that are the cause of occupy wall street. We have companies that are turning multi billion dollar profits and are paying no taxes. Also in the article federal corporate taxes make up only 1.3 percent of revenue. So the rest comes from the people. You might say the rich pay the majority of it, and they are also the ones getting all the money from the corporations that don't pay taxes. Yes both are true but then also the rich are paying a lower percentage in taxes then do the the rest of the 99 percent. So yet again hear is the poor paying to keep the rich rich.

bottomline.msnbc.msn.com
(visit the link for the full news article)

Yes, but it is those billion dollar companies who create tens of thousands of jobs and whose employees DO in fact pay federal taxes.

So what's your point?

Weather they pay taxes or not so long as they turn a profit they are still employing the tens of thousands of employees. The difference and the point is they would pay taxes first, then pay the rich sob shareholders. If they are set up to pay no taxes they just pay the rich shareholders more and I might guess pay them selves a bigger bonus.

reply to post by RedGolem


If they paid taxes those tax dollars would not be sent to the investors and less taxes would be taken from investors. This is a direct quote, "An increasing number of U.S. companies don’t pay a dime in income taxes to the federal government because of a special structure that passes profits along to investors who then pay the taxes."

Can you show me less overall taxes are paid in this structure and that in the structure you favor (companies paying the tax) more tax dollars would be paid?

reply to post by OccamsRazor04


Occams
Thanks for making a good point and asking a good question.
No I can not, and I am not an economist. My point to this particular mess is where all the money is going. Yes they pay no taxes so much more money goes to the investor, shareholder. Who are the shareholders? All the board members, CEO, CFO, all of the rich attorneys that find the loopholes, the lobbyist that push it past the politicians, and probably the politicians. My gripe with this thread is that this structure is just another way for the rich to keep getting richer while doing nothing for the little people they walk all over to get there.

reply to post by RedGolem


I underfstand, but if it was altered so that the tax was taken before the income given to shareholders that would not change. If there is evidence that this system decreases tax revenues (which i am inclined to think it does) then I am all for changing it. As of yet I have seen no evidence of this, only an emotional response that does not reflect the information provided. My guess would be that due to the tax system less taxes are collected in this method and changes should be made, but my guess is not evidence.

Originally posted by OccamsRazor04


I underfstand, but if it was altered so that the tax was taken before the income given to shareholders that would not change.

The system would not change of paying the share holders, but the amount would be less because the corporate taxes would have been paid. If that is what you were saying. I do not know if the tax revenue is more or less with which system, but I do have a feeling you are right that there is less revenue with this no tax system.

reply to post by RedGolem


I'd like to have a look at tax returns of all the congressmen.

reply to post by taxslave


Taxslave
thanks for posting, and I would agree to anything that might help bring back the middle class.