Report: Corporate Profits Directly Tied To Preferential Tax Treatment

[txlibdem]

November 04, 2011 06:00 AM
Report: Corporate Profits Directly Tied To Preferential Tax Treatment
17 comments
By karoli

"If you needed evidence that corporate tax rates are far too low and large corporations receive far too many tax benefits, look no further than the new study just published by Citizens for Tax Justice.

CTJ undertook a study of the 280 largest companies in the United States to see what they actually paid (or didn't pay) in taxes. From their press release:

• "These 280 corporations received a total of nearly $224 billion in tax subsidies," said Robert McIntyre, Director at Citizens for Tax Justice and the report's lead author. "This is wasted money that could have gone to protect Medicare, create jobs and cut the deficit."
  
  
• 30 Companies average less than zero tax bill in the last three Years, 78 had at least one no-tax year.
  
  
• Financial services received the largest share of all federal tax subsidies over the last three years. More than half the tax subsidies for companies in the study went to four industries: financial services, utilities, telecommunications, and oil, gas & pipelines.
  
  
• U.S. corporations with significant foreign profits paid tax rates to foreign countries that were almost a third higher than they paid to the IRS on their domestic profits.

That $224 billion number is really significant. If we were to extrapolate that into a ten-year number to compare with CBO analyses of various revenue proposals, it would be an expenditure of about $750 billion over a ten-year period. Imagine that. We wouldn't have to worry about Medicare cuts or deep cuts to discretionary spending if those tax preferences were rolled back."

http://crooksandliars.com/karoli/corporate-profits-directly-tied-preferentia

[dkf]

1. Well they say that loopholes account for over $1 trillion a year so even this is small.

[txlibdem]

3. We didn't get into this budget mess overnight - it's not all from Pres. Obama

It started with Pres. Reagan and has climbed under Republican administrations ever since. By the end of Bush II's reign, it was over 10 Trillion.

Think of it in terms of money either going out year after year or coming into the budget each year. After 14 years of just that one change, the entire budget deficit would be paid off.

That's a big deal.

[Swede Atlanta]

2. Very interesting but...........

Nothing is going to change. The tax loopholes will not be closed and the corporate welfare will continue. No Republican dare touch the American untouchables, the monied business interests. It will never happen. They rely too much on them for their election coffers to ever go against them. And the same applies to most Democrats. This is just a shiny object..nothing to see here...move along.

[txlibdem]

4. Alan Grayson is running for congress again - he is the man to help us change the system

We need to have public funded elections and shorten the election cycle to 60 days or 90 days. This will end the influence of lobbyists for the most part and will bring back some much-needed sanity to our elections.