While most average Americans go through life thinking there are two things for certain, death and taxes, big corporate players know that nothing could
be further from the truth. Study's show that virtually all large corporations pay zero income tax. In fact, despite huge annual profits, most
actually receive huge federal rebate checks and tax credits equaling $billions! Many of these companies are also atop the list of major federal
contractors receiving $billions in government contracts every year. America,Inc. is currently in full force. Through subsidies, accelerated
depreciation and stock option laws, tax credits, offshore tax shelters and who knows what else. Mega corporations pay an income tax rate, supposed
statutory 35%, that is effectively as low as -30% and never higher than 25% or so. This is yet another sickening example of the pay to play fraud that
is created when you mix greedy corporate lobbyists with corrupt politicians.
The most obvious evidence of Washington being corrupt is seen when looking at the data on companies that are related by industry. In a study done in
2004 titled, "Corporate Income Taxes in the Bush Years", data shows that,
- Maytag and Whirlpool both make appliances, In the 2001-03 period, Whirlpool paid 31.2% of its profits in corporate income tax, while Maytag paid
- Merck and Pfizer are both pharmaceutical companies. In the 2001-03 period, Merck paid
an effective U.S. tax rate of 32.5%, while Pfizer paid only 8.2%.
- Among industries, both publishers and oil companies provide sought-after products. But
publishers paid 23% of their profits in taxes during the 2001-03 period, while oil companies paid only 13.3%.
You can plainly see that Maytag, Pfizer, as well as the entire oil industry have gained favor over their respective competition. This can only be
attributed to corruption and fraud between corporate lobbyists and dirty lawmakers. This is not only unfair, it's very damaging to economic
conditions. Basically, companies that play by the rules suffer profit losses, while those that evade the required "stimulus" to our economy see
Study says most corporations pay no U.S. income taxes
Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth
of sales, a government study released on Tuesday said.
The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United
States paid no federal income taxes for at least one year between 1998 and 2005.
The study showed about 28 percent of large foreign corporations, those with more than $250 million in assets, doing business in the United States paid
no federal income taxes in 2005 despite $372 billion in gross receipts, the senators said. About 25 percent of the largest U.S. companies paid no
federal income taxes in 2005 despite $1.1 trillion in gross sales that year, they said.
In the past, corporate income tax accounted for 5%-7% of the US GDP. That percentage, [image below], has declined considerably since and is now closer
to 1%, despite huge increases in corporate profits. This amounts to $billions that are made up through tax increases to those of us not sleeping with
This is far from a free market economy! Letting government pick and choose which areas of the "free market" they feel like supporting is not
stimulus. Rewarding chosen companies with tax rebates in the $billions on top of their annual profits, while ignoring lawful ones as they dissolve?
There is no excuse for this. Propping up entire industries that have evaded tax requirements for years, while they record profits, is shameful and
inexcusable. As you can see, Washington's stimulus packages are not a new thing. They have always been doing this in one form or another and probably
always will? As long as we let it go on, we are deserving of its consequences.
When congress wants to pass a stimulus bill we must confront it with what they are already doing! When they want us to pay more, we must demand only
to do so when these others have caught up! We must demand accountability! Stop letting new discussions happen until old ones are discussed! Start
looking around our past when they bring up things that seem new. They have nothing new that they haven't committed against us in the past. It must be
found and thrown back in their face!
[edit on 3/17/2009 by Zerbst]