Aug 25, 2008
A new study just done by the Government Accountability Office holds no surprises: Most corporations avoid paying income taxes.
Looking at more than a million corporations from 1998 to 2005, the study found that two out of three paid no federal taxes some time in that period. For larger-sized corporations, the study found one out of every four corporations paid no federal taxes.
Corporations supposedly pay a 35% tax rate, which for all their income should have meant 875 billion dollars paid in federal taxes over the eight years. Instead, corporations paid much less, only 307 billion dollars over the period studied. Corporate financial officers and accountants certainly find lots of ways to lower the corporate tax bill.
If only we had creative accountants, and friends in Congress to write us tax exemptions, we too could have a 65% reduction in our tax bills!