April 6, 200422 yr More than 60% of U.S. corporations didn't pay any federal taxes for 1996 through 2000, I am sure this is Bush's fault as well
April 6, 200422 yr Author Isn't the theory you reduce the burden on companies so they hire more people who pay taxes . . .
April 6, 200422 yr You can blame a lot of the Congressmen who got tons of PAC money to let companies move their base of operations (in name only) to Bermuda. It's sickening. Then they get millions in corporate welfare from the US taxpayers.
April 6, 200422 yr How about we blame the companies that didn't pay? Only when there was a Dem in the White House, otherwise, you blame the Republican Pres.
April 6, 200422 yr Author Only when there was a Dem in the White House, otherwise, you blame the Republican Pres. I thought getting government out of the private sector and letting them grow was a republican idea? Didn't businesses hire more people with those tax savings? Didn't that spark the economic boom of the Clinton years?
April 6, 200422 yr I thought getting government out of the private sector and letting them grow was a republican idea? Didn't businesses hire more people with those tax savings? Didn't that spark the economic boom of the Clinton years? Tax CUTS, not tax AVOIDANCE!
April 6, 200422 yr Can someone explain how they got away with this? Cause i don't get it There is a million ways to get away with this stuff. The thing is because of the complexities of corporate accounting, the IRS collects more money per hour of work chasing the little man, than it does chasing the Microsofts of the world. And with the limited manpower of the IRS, you have to make these kind of choices of who to go after.
April 6, 200422 yr There is a million ways to get away with this stuff. The thing is because of the complexities of corporate accounting, the IRS collects more money per hour of work chasing the little man, than it does chasing the Microsofts of the world. And with the limited manpower of the IRS, you have to make these kind of choices of who to go after. Corporate Accounting is complex?
April 6, 200422 yr Author Can someone explain how they got away with this? Cause i don't get it But the federal tax code also offers many credits and loopholes that allow many companies to pay far less than that. Much of it comes in the way of incentives to move to a new location (enterprise zones), to employ certain groups of people (welfare to work programs), being aggressive in taking write offs, etc. Corporations pay on profits. If you are able to shield you profits from Uncle Sam, you win. Take for example a company with operations in the US and Ecuador. They do most or all of their manufacturing in Ecuador. Were should they report their profits? For example, does the Ecuador company sell the item to their US entity for the actual price to manufacture, effectivly showing zero Ecuador profit or do they take a markup when it goes to the US, lowering the US profit? Teams of accountants determine the best ratio to use to maximize the corporate bottom line profits. If you happen to be a shareholder in that company you applaud their results.
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