Congress, Justice, Politics

Big Corporations and Federal Taxes

Submitted by Lawrence Rafferty, (rafflaw), Guest Blogger

With the constant news reports highlighting the economic woes of the State and Federal governments and the important battle in Wisconsin and other states over the claim that workers need to sacrifice a little more to help out their state governments, it is interesting to learn just how much big corporations pay in Federal Taxes. Would it surprise you if I told you that many of our largest corporations pay zero Federal taxes?

I don’t know about you, but it did surprise me to learn that Bank of America, General Electric, Boeing, Citigroup and Exxon-Mobil pay no Federal taxes. “Indeed, as politicians are asking ordinary Americans to sacrifice their education, their health, their labor rights, and their wellbeing to tackle budget deficits, some of the world’s richest multinational corporations are getting away with shirking their responsibility and paying nothing.” Think Progress   We are not talking about corporations who have had big losses to deal with, but huge profitable companies who are making Billions off of the American public and paying zero taxes to Uncle Sam.

One company on Think Progress’ list is Boeing. Some years ago Boeing moved its headquarters to Chicago and received millions in tax breaks from the State of Illinois and the City of Chicago as an inducement to move to Chicago. I bring up Boeing because it is based out of nearby Chicago and because it is a big military contractor. That means it gets billions in business from the U.S. Military. In fact, Boeing just received a $35 Billion dollar contract to build tankers for the United States Air Force over the next several years. “Despite receiving billions of dollars from the federal government every single year in taxpayer subsidies from the U.S. government, Boeing didn’t “pay a dime of U.S. federal corporate income taxes” between 2008 and 2010.”  Boeing 

Boeing is not alone on the list of these big corporations that does business with the United States Military, but pays little or no Federal tax on its profits. General Electric is another prime example of a company making billions off of the United States, while paying zip in federal taxes. “In 2009, General Electric — the world’s largest corporation — filed more than 7,000 tax returns and still paid nothing to U.S. government. They managed to do this by a tax code that essentially subsidizes companies for losing profits and allows them to set up tax havens overseas.” Think Progress

Why is it that the American public buys products from and supports these huge corporations and yet these corporations don’t have to pay taxes on their profits? The answer is really pretty simple. Who do you think writes or influences Congress to write the tax laws that allow these companies to steal from the American public? Corporate Lobbyists pull the strings and Congress jumps. Tax Analysts   The ability of these big corporations to get away with paying little or no Federal taxes puts a huge burden on the average American taxpayer and corporations that do not take advantage of the loopholes. “According to a report from the U.S. PIRG Education Fund, a $100 billion annual tax burden is shifted to US-based individuals and companies thanks to corporations stowing their profits offshore: Over ten years, an estimated $1 trillion in revenues is lost due to the use of tax havens and the government must make up for this shortfall. This diversion ends up being shouldered by other companies and taxpayers and is transferred as higher debt for future generations.” Wonkroom

The next time your read or hear about the sacrifices that the middle class must make in order to shore up the government’s finances due to an economic disaster that was mainly caused by Wall Street, ask how much extra General Electric or Boeing or Bank of America are going to put into the tax pot to help balance the budget. Maybe Citigroup or Exxon-Mobil or Wells Fargo will be sacrificing in order to restore financial sanity to the Federal budget. If you believe that, then I guess pigs really do fly. Wouldn’t that $1 Trillion dollars of lost tax revenue come in handy right about now?

Submitted by Lawrence Rafferty, (rafflaw), Guest Blogger

111 thoughts on “Big Corporations and Federal Taxes”

  3. OS,

    Fantastic. Error 503 – Service not available. On attempted refresh though, it did load. Let’s just hope Anonymous can keep hammering until Koch’s IT staff spontaneously combusts.

  4. raff:

    Its not the unions?

    They are being blamed for every thing lately.

    “Who do you think writes or influences Congress to write the tax laws that allow these companies to steal from the American public?”

  5. raff,

    An excellent and timely idea for a column and a blatant example of the type of inequity that will eventually lead to class warfare. Class warfare where corporations and corporate officers will be targets for the pitchforks. It also makes me wonder what kind of tax subsidies the Koch’s are getting to further aid in financing their fascist union busting and attempt to control all aspects of government in this country.

  6. I posted a comment about the shadowy group Anonymous yesterday in Elaine’s fine story on Scott Walker. Anonymous announced in an open letter that they are going to target the Koch syndicate. Try visiting their front group, “Americans for Prosperity.”

    It has started: http://www.americansforprosperity.org/

  7. “$1T … would more than pay for …” should read

    “$1T … would pay for 8 or 9 months of federal overspending”

  8. Puzzling, I don’t have a problem with ending the wars,but that is even less likely than actually making corporations pay their fair share

  10. One trillion in revenue from corporate tax revenues (assuming you could actually collect it from multinationals with many places to hide), would more than pay for about 8 or 9 months of federal overspending, which totals $1.5 trillion per year. Per year, the $100B collected is a pittance in comparison with a $1600B deficit.

    Roam is correct in the sense that higher corporate taxes are largely passed on to the consumer. If they were not passed on we would likely see lower stock valuations, which hit 401k’s and pension funds. That said, if we’re talking about the military-industrial complex with firms like Boeing then higher prices are simply paid by taxpayers in the contract price. There is no free lunch with corporate taxation.

    A far better way to balance the budget is to END THE WARS.

  11. Roam/Moar not even a particularly original moron. Sadly there are plenty of peasants like this that think serfdom is not their lot in life & they actually have a chance to grab the brass ring if only the government would do nothing & collect no taxes. Our corporate masters love surfs like Roam/Moar.

    Here is another truth – The wingnuts are very very very fond of telling you that the US has the highest corporate tax rates in the world!!!!!!! What they don’t want to mention, what they try to hide, is that those lower rates all come with few exemptions so that US corporations pay less in taxes than they would in any other industrialize country. Yes, the tax burden on corporations is LESS than in the rest of the world.

  12. Again, we have a new user who posts a hit and run comment. Roam is probably an apropos name for the kind of shilling we see. Google search for blogs or other posts for an article or diary on a topic with the right search terms, then the shill swoops in to argue corporate or right wing talking points.

    raff, you are probably right about Roam not reading what you wrote. When you are being paid by the piece, you do not have time to really engage in reasoned debate which requires thinking and actual interaction with the writer or other commenters.

  13. Roam is right.

    Anyway Exxon makes about 30 cents on a gallon of gas.

    If you kill Exxon Mobil, Koch Industries, McDonalds, etc., then where are you going to be.

    The economic ignorance of the left is just unbelievable.

    Check out the Bakken Oil fields in North Dakota, it is causing a boom up there. People are actually able to work. Your policies kill progress, jobs and people.

    You are against oil because it is the life’s blood of our economy, you want to drain what is left of the carcass.

    http://www.chron.com/disp/story.mpl/editorial/7380721.html

  15. Roam,

    Next time you go to a Exxon/Mobile station….go ahead and complain about the 75 cents a gallon for the state and federal agenda…. Then think about that same 75 cents a gallon being in your pocket… I have a 27 gallon tank… I drive in excess of 500 miles a week…I get between 15 and 20 miles per gallon… But then again…I am indirectly subsidizing the lost taxes…..

    Then what about food…how does it get to the store….diesel…you know what the tax is on diesel? You wanna figure out if food prices could be lower if taxes and fuel were lower….or are you good with the concept of corporate welfare….

  16. AY,
    Good response. It looks like Roam didn’t read the entire posting because one of the links actually states that the tax code gives these coporate welfare “persons” an incentive to send jobs overseas and to setup overseas tax havens.

  18. Roam,

    It is not a Tax on the line about…it is a tax on the bottom line…. but then again…I suppose Exxon should be able to make 58 billion tax free….while you subsidize them….good thinking….You do it ok….

  19. Do you think that raising taxes on corporations would be free?

    Who do you think pays higher corporate taxes? WE do – the consumer!

    Raising taxes will only increase the speed of jobs leaving the United States for better educated, lower-tax venues.

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