Tag Archive: Loopholes


26 Top American Corporations Paid No Federal Income Tax From ’08 To ’12

 

TAX FREE CORPORATIONS 08-12

 

 

” Twenty-six of the most powerful American corporations – such as Boeing, General Electric, and Verizon – paid no federal income tax from 2008 to 2012, according to a new report detailing how Fortune 500 companies exploit tax breaks and loopholes.

  The report, conducted by public advocacy group Citizens for Tax Justice (CTJ), focuses on the 288 companies in the Fortune 500 that registered consistent profit every year from 2008 to 2012. Those 288 profitable corporations paid an “effective federal income tax rate of just 19.4 percent over the five-year period — far less than the statutory 35 percent tax rate,” CTJ states.

  One-third, or 93, of the analyzed companies paid an effective tax rate below 10 percent in that timespan, CTJ found.

  Defenders of low corporate taxes call the US federal statutory rate of 35 percent one of the highest companies face in any nation. But the report signals how the most formidable corporate entities in the US take advantage of tax breaks, loopholes, and accounting schemes to keep their effective rates down.

“Tax subsidies for the 288 companies over the five years totaled a staggering $364 billion,including $56 billion in 2008, $70 billion in 2009, $80 billion in 2010, $87 billion in 2011, and $70 billion in 2012,” CTJ states. “These amounts are the difference between what the companies would have paid if their tax bills equaled 35 percent of their profits and what they actually paid.”

   Read it all . You’ll be totally disgusted but you still need to know just how alive and well corporate cronyism is in this new age of Obama .

 

 

Dorner Reward Loophole: 3 Rewards Amounting to $1.2 Million Likely to Be Unpaid

 

 

” Chris Dorner’s reward has a big loophole basically preventing all those instrumental in finding the ex-LAPD cop fugitive from claiming the $1 million reward, according to reports out on Wednesday.

It has been reported that a number of local citizens in the Los Angeles area where Christopher Dorner was found and ultimately died, played a big part in police locating him.

The Mayor of Los Angeles had announced a $1 million reward for anyone who could provide information to police leading to the “capture and conviction” of Dorner. The $1 million is said to have been funded by private groups. However, technically the offer was made for his capture, and also his ultimate conviction in a court of law.”

 

 

It’s Not Like They Are Captives Or Something … Yet

 

 

” One of the biggest mistakes liberals tend to make is assuming a static response from the people being taxed.

This is a big mistake, particularly when you’re talking about the rich. The rich — being rich — have lots of options. They can hire the best accountants to find loopholes, hire lobbyists to create loopholes, shift their money around to protect it from the tax man, stop working, and, yes, as the Britons are finding out, they can also JUST LEAVE.

In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.

This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election. “

A Very Good Question 

 

” Basically because he’s a rich, successful guy (which is why a lot of people are listened to on a lot of subjects).

To that end, economist and former Romney advisor Greg Mankiw has a short post talking about Buffett as a master of “tax avoidance,” wherein he lists four things Buffett does to avoid paying taxes. ”

 

 

 

 

” Other folks, in the past, have charged that Buffett specifically benefits from the tax proposals he backs.

Tim Carney of the Washington Examiner has pointed out:

Buffett regularly lobbies for higher estate taxes. He also has repeatedly bought up family businesses forced to sell because the heirs’ death-tax bill exceeded the business’s liquid assets. He owns life insurance companies that rely on the death tax in order to sell their estate-planning businesses.”

 

 

Remember This :

 ” But if he were truly sincere, perhaps he might simply try paying the taxes the IRS says his company owes? According to Berkshire Hathaway’s own annual report — see Note 15 on pp. 54-56 — the company has been in a years-long dispute over its federal tax bills. ”

 

And This :

 ” What is represented by the 6% or 11% statutory rate v. “paid” differential?  “Loopholes”, aka the normal operation of the tax code.  The taxes are not legally payable yet as a function of the tax code and may never be actually paid if the changes in asset values are not “recognized” for tax purposes.   However it’s important to note that the 11% or 6% differences are not exactly chump change either.  5.9% of the pre-tax earnings total of $38.2 billion reported over those three years represents $2.2 billion in arguably “underpaid” tax and the 11.1% differential would represent $4.25 billion “underpaid” tax.  If Berkshire were an “evil” oil company these figures would likely be spun this way. “