Quote:
Originally Posted by Flames Fan, Ph.D.
Yes, and I'm all for it.
For those that are interested, the number being tossed around was 21-23% flat rate and removal of the loopholes.
This proposal, however, appears to be getting heavy behind-the-scenes criticism from think tanks like Heritage and AEI. That makes it pretty clear that the effective tax rate for wealthy corporations in the US is significantly below 21-23%. In essence, this proposal has become a small business owner vs. large corporation issue.
I know where I'd place my bet.
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This will never take place, doesn't matter if the president is Republican or a Democrat.
General Electric, the nation’s largest corporation, had a very good year in 2010.
The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.
Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.
Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.
http://www.nytimes.com/2011/03/25/bu...x.html?_r=4&hp
Over 100 companies on the S&P500 paid less than 20 percent in taxes, according to a study by Capital IQ and the NYT. That's not even counting 37 companies like Citigroup and AIG that received more in tax credits than they paid. All this thanks to loopholes in the immensely complicated tax code.
America's corporate tax rate is supposed to be 35 percent.
Example:
Xcel Energy (XEL)
Pre-tax income: $4,334 million
Taxes paid: $77 million
Tax rate: 1.78%
Read more:
http://www.businessinsider.com/16-mo...#ixzz1TAd2Ypcf
We can talk taxes till we are blue in the face, but the fact is that big companies are in bed with policy makers and law makers from both sides and it is you as a joe average tax payers who's being raped.
PS from the NY article:
"President Obama has said he is considering an overhaul of the corporate tax system, with an eye to lowering the top rate, ending some tax subsidies and loopholes and generating the same amount of revenue. He has designated G.E.’s chief executive, Jeffrey R. Immelt, as his liaison to the business community"
all I can say is...lol...the change is coming!