What the Top U.S. Companies Pay in Taxes

[Joanne98]

As you work on your taxes this month, here's something to raise your hackles: Some of the world's biggest, most profitable corporations enjoy a far lower tax rate than you do -- that is, if they pay taxes at all.

The most egregious example is General Electric (NYSE: GE - News). Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.

Avoiding taxes is nothing new for General Electric. In 2008 its effective tax rate was 5.3%; in 2007 it was 15%. The marginal U.S. corporate rate is 35%.

How did this happen? It's complicated. GE's tax return is the largest the IRS deals with each year -- some 24,000 pages if printed out. Its annual report filed with the Securities and Exchange Commission weighs in at more than 700 pages.

http://finance.yahoo.com/taxes/article/109244/what-the-top-us-companies-pay-in-taxes

[proud2BlibKansan]

1. Some idiot repuke in my state

actually proposed eliminating taxes on corporations. As if they pay so much now?? LOL

[Zynx]

2. Conceptually it makes sense to eliminate corporate taxes except for an amount

that is commensurate with the costs they incur to society and to shift the burden directly to capital owners. Currently, the corporate income tax is actually an indirect tax on capital owners and some of the incidence actually gets spread to workers. So, if the corporate income tax was eliminated and there were higher taxes directly on capital owners, the system would be more direct.

[Kolesar]

3. Yes, there is a certain logic to support the idea

Then corporations could skip the expense of elaborate calculations by tax accountants before they make capital decisions. Or other financial decisions, for that matter.

[indepat]

4. And didn't the gipper believe corporations should not pay income taxes, that income taxes were a

people tax that only people should pay? But now that corporations are people, shouldn't corporations be paying income taxes at the highest marginal rates and also be subject to the AMT and: for good measure, be eligible for the death penalty for conviction of certain egregious crimes, just like ordinary people can? :-)

[proud2BlibKansan]

5. Since corporations are now people . . . .

LOL

[seeviewonder]

7. And since they can marry (merge) like natural people

why is it that gays and lesbians are not allowed to marry? It just doesn't make any damn sense to me that they are legally people and are treated like they have the freedom to do as they please. If this doesn't make a case for protectionism I don't know what does. Seriously, if they are allowed to save so much in taxes by doing business abroad or simply parking assets there maybe we should tax them enough to make up the difference. It would probably stop them as well as clean up that loophole. Of course, this is just my thought and it's just a start to make the playing field a little more fair.

[propaper]

6. Many argue the less taxes corporations pay the less stuff they make costs.

I believe taxes are just a cost of doing business and ultimately that TV you buy is increased by the cost of any taxes the corporation ends up paying.

[rgbecker]

9. I know I could charge a lot less for my carpentry work if I didn't have to pay taxes...

So if its OK with you, I'll just skip the taxes this year and reduce all my charges by say 20%...It will all even out in the end.


:sarcasm:

[yurbud]

8. conservatives love flat taxes--let's give them to transnational corporations.

[progressoid]

10. Woo hoo! Free market baby!

[vssmith]

11. Simplify

The amount they report to shareholders should also be reported to the IRS