Nov 14, 2011
A November study by the Citizens for Tax Justice found that 280 of the largest companies in the U.S. paid on average half the tax rate under which the bosses claim they are suffering. Their average rate over the last three years was half the official rate and in fact a quarter of these large companies paid less than 10% in federal taxes.
General Electric and Wells Fargo had billions in profits but paid no taxes thanks to tax benefits from their buddies in Congress. In all, 30 companies owed nothing and, thanks to tax laws riddled with loopholes, they got tax benefits or credits on future taxes owed.
Despite their constant whining, U.S. corporations pay overall a quarter of what they paid in the bustling 1950s, another era of corporate profit. While the unemployment rate remains enormous, while the country suffers in a recession, these corporate “citizens” add to the deficit and to the tax burden of everyone still working.