Nov 03, 2011 in Politics
Says the “person” who pays no rent:
(Reuters) – Thirty large and profitable U.S. corporations paid no income taxes in 2008 through 2010, said a study on Thursday that arrives as Congress faces rising demands for tax reform, but seems unable or unwilling to act.
Pepco Holdings, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent, among the 280 Fortune 500 companies studied.
The statutory U.S. corporate income tax rate is 35 percent, one of the highest in the world, but over the 2008-2010 period, very few of the companies studied paid it, said the report.
The average effective tax rate for the companies over the period was 18.5 percent, said Citizens for Tax Justice and the Institute on Taxation and Economic Policy, both think tanks.
Their report also listed General Electric Co, Paccar Inc, PG&E Corp, Computer Sciences Corp and NiSource Inc as among the 30 that paid no taxes. All 280 corporations examined were profitable over the period.
Corporations will say rightly that the loopholes that let them slash their taxes were perfectly legal, the report said.
“But that does not mean that low-tax corporations bear no responsibility … The laws were not enacted in a vacuum; they were adopted in response to relentless corporate lobbying, threats and campaign support,” the report said.
Despite the moaning and groaning, companies in the United States have it easy. Sure, they’ll threaten to “Go Galt” but that bluff was called after the Affordable Care Act passed and the biggest threat the 101st Fighting Keyboarders could come up with was to stop tipping their wait staff which we all knew was bullshit from the start because nobody tips the cashiers at McDonald’s. So why are they calling for more tax breaks for corporations that already pay no taxes? Because, as the above article points out, in the case of Pepco Holdings you’re receiving a net subsidy. Players gotta play, lobbyists gotta lobby and tricking some meth-addled sheet-rocker from Tulsa into footing the bill for your Bulgari cufflinks won’t weigh heavy on the conscience when your boss is a legal fiction with no responsibilities to its fellow “persons”. To do otherwise would be socialism!