Think Progress reports that not only are corporate taxes at a 40 year low, despite what the GOP and Fox News want you to believe, but that 26 highly profitable corporations paid NOTHING in taxes last year. This is why we can’t have nice things.
Last year, Citizens for Tax Justice found that 30 major corporations had made billions of dollars in profits while paying no federal income tax between 2008 and 2010. Today, CTJ updated that report to reflect the 2011 tax bill of those 30 companies, and 26 of them have still managed to pay absolutely nothing over that four year period:
– 26 of the 30 companies continued to enjoy negative federal income tax rates. That means they still made more money after tax than before tax over the four years! …
– In total, 2008-11 federal income taxes for the 30 companies remained negative, despite $205 billion in pretax U.S. profits. Overall, they enjoyed an average effective federal income tax rate of –3.1 percent over the four years.
Amongst the 30 are corporate titans such as General Electric, Boeing, Verizon, and Mattel…. Continue reading
And here are a couple of facts from the CTJ report:
Had these 30 companies paid the full 35 percent corporate tax rate over the 2008-11 period, they would have paid $78.3 billion more in federal income taxes. Or put another way, over the four years, the 30 companies received more than $78 billion in total tax subsidies. Wells Fargo alone garnered $21.6 billion in tax subsidies over the four years, followed by General Electric ($10.6 billion), Verizon ($7.7 billion), and Boeing ($6.0 billion).
In 2011 alone, 24 of the 30 companies paid effective tax rates of less than 4 percent, including 15 that paid zero or less in federal income taxes in that year. For all 30 companies, the average 2011 effective federal income tax rate was a paltry 7.1% — only a fifth of the statutory 35 percent federal corporate tax rate.
Imagine the potential programs and services our country could have (health care for all, single payer), or the many programs and services that Paul Ryan and Mitt Romney might not even think about cutting, if corporations actually PAID a 35% corporate tax rate.
And with all this money they’re shoveling into their corporate bank accounts, from both profits and zero tax liability, where are the jobs? And why is the Republican Party trying to make the case that corporations need even more tax cuts and another tax loophole, like “repatriation holidays” for corporate stashes overseas?
A POLITICO review of annual reports and Securities and Exchange Commission filings shows that a dozen of the most vocal corporate critics of U.S. tax policy finished 2011 with more than $455 billion in cash, investments and other earnings held by foreign subsidiaries — up from $381 billion the year earlier.
The companies have avoided U.S. taxes on almost every penny of their international profits by keeping the money offshore. And nearly that entire haul has been designated by top executives of those firms as “permanently” or “indefinitely” reinvested abroad, partly because of the 35 percent U.S. tax rate companies must pay to bring home foreign money.
[...]U.S. multinationals have hired an army of lobbyists to sell the idea of a tax holiday to Congress, so they might repatriate a pot of overseas profits estimated at more than $1 trillion for as low as a 5.25 percent rate. The companies — along with the U.S. Chamber of Commerce — argue that repatriation would serve as an instant stimulus of sorts, allowing hundreds of billions of dollars to flow in to the economy.
Critics disagree. They say the proposal is bad tax policy.
As evidence, the critics point to a 2004-05 tax holiday that brought some $312 billion back into the U.S. Most of that was spent on dividends and stock repurchases — not building or hiring. Continue reading…
These corporations and rich CEOs need to remember that the rest of us don’t mind their success, we mind that they’re robbing us and the country blind for their profits. Or as Elizabeth Warren said, “There is nobody in this country who got rich on his own. Nobody.”
From CTJ — the companies who are shifting their tax burden onto the rest of us (some have done so for a decade or more):