Is the current federal corporate income tax law working or are some corporations working the current tax law?
ZERO- amount of corporate federal income taxes paid in 2012 by Facebook on $1.6 billion pre-tax income. $429 million amount of taxpayer dollars Facebook received in 2012 in corporate welfare. $2.17 billion tax deductions Facebook received in 2012 which it can use in future years!!!!
ZERO--amount of corporate federal income tax paid by 4.5 million S corporations, two-thirds of all U.S. corporations. Bechtel the largest engineering and construction company in the U.S with 52,700 employees, and $27.9 billion in revenue is an S corporation!!
Citizens for Tax Justice studied the tax records of thirty of America’s largest C corporations for the years 2008-2011 including GE, Boeing, Verizion, and Mattel. 26 paid ZERO corporate federal income tax. The 4 remaining paid tax rates of less than 4%. Overall all 30 corporations had an average federal income tax rate of -3.1% over that 4 year period.
In 1952 federal corporate income taxes collected was 6.1% of GDP and by 2010 had fallen to 1% of GDP - the lowest rate since 1936!!!!
Corporate profits in the third quarter of 2012 hit an all-time high of $1.75 trillion up 18.6% from 2011 and representing 11.1% of GDP while wages for workers hit an all time low falling to 43.5% of GDP.
In an article dated April 9, 2012, after a study of 450 companies in the Standard and Poor Index, the Wall Street Journal summed up how corporations had worked the current tax laws in this language: “Big U.S. Companies have emerged from the deepest recession since World War 11 more productive, more profitable, flush with cash and less burdened by debt.”
Does the individual federal income tax law work, or do some individuals work the tax law?
ZERO--amount of federal income tax paid by about half of the people who file tax returns.
14% the federal income tax rate paid by Mitt Romney with assets over $250 million which provide an annual income over $20 million.
16% the tax rate paid by Warren Buffet America’s second richest man with assets of $46 billion—half the rate paid by his secretary.
If federal income tax rates are too high why:
Does 34% of the world’s billionaires live in America, three times more than the number that live in any country in the world?
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Does 3,104,000 of the world’s millionaires live in America - almost twice the number that live in any other country in the world?
Does 68% of millionaires in a recent poll say they should pay more taxes?
Does America’s two riches men Bill Gates and Warren Buffet say they should pay more taxes
If federal income tax rates are too high how did:
Exxon-Mobile make $82,56l.00 profit per minute after taxes the first three months of 2011?
Warren Buffet start Berkshire Hathaway in 1962 when the top federal income tax rate was 91% and make it into the 7th largest corporation in America with over $427 billion in assets?
Sam Walton go from one Wal-Mart store in Bentonville, Arkansas on July 2,1962 to become the largest retail merchandiser in the world and from 1982 to 1988 be the richest man in America. Twenty years after his death his 4 children are listed as number 6-7-8-9 of America’s wealthiest worth over $20 billion each.
Bill Gates become the richest man in America with assets over $66 billion?
Mark Zuckerberg at age 28 acquire $9.4 billion in assets 8 years after launching Facebook?
Many people believe the above examples show gross unfairness in the current federal income tax system which Congress created and maintains and believe our federal tax system should be revised from top to bottom.
Many people believe the 5 Arkansas Republican congressmen, who along with 253 of their fellow Republican Congressmen, signed the Grover Norquist taxpayer protection pledge promising on their oath to oppose all efforts to increase taxes or eliminate loopholes which make revision of the current tax system impossible.
History indicates the rich always get richer and the poor get poorer regardless of the tax rate. From 1979 to 2007 income for the richest 1% grew 275%, for the next 19% income grew 65%, for the next 60% income grew 40% and for the bottom 20% income grew 18%.
(Paul Rawlings of Heber Springs contributes monthly to the editorial pages of The Sun-Times)