Posts
In Friday night's debate John McCain said the tax rate in the United States on corporations is too high.
McCain must have forgotten that most corporations aren't pay any taxes at all.
The Government Accountability Office is set to release a report that says most U.S. corporations pay no federal income taxes.
And most foreign companies that do business in the United States aren't paying corporate taxes.
The study says about two-thirds of American corporations paid zero income taxes to Uncle Sam between 1998 and 2005.
An even higher percentage of foreign corporations avoided federal corporate taxes.
2 comments:
The problem is that small businesses often do pay corporate taxes. Some avoid them as Subchapter S corps, but any form that allows more open investment does not permit this. And keep this in mind, you need to have US income to have tax obligations. Many companies do not in any given year, and so much of the lack of taxes can be attributed to that fact. If we want to attract profitable companies to the US, we need to lower the rate. Or, better yet, eliminate corporate taxes altogether. Let corporate income be captured through capital gains instead.
The rate doesn't matter if the vast majority of large corporations aren't paying any taxes. 0 taxes on a 100% rate is 0. 0 taxes on a 5% rate is 0. If large coporations paid their fair share then the tax rate on other, responsible companies and citizens wouldn't be as high. It is time for corporations to become responsible.
Post a Comment