One of the letters that you were too lazy to read, points out that if
you have a very high stated tax rate, then you will employ an army of
lawyers to comb through all available loopholes to lower your legal tax
obligation. Again, there is a trend among both Old Europe and New Europe
to lower their corporate tax rates and they find that they are actually
bringing in more revenue with a more realistic rate.
As for the agency which stated the 2/3 corps not paying taxes, they made
no effort to analyze why that may be. One explanation posited elsewhere
is that most US corporations are small businesses and many of these have
little or no profits. And, to repeat, many of these with profits, pass
their profits to their owners as salaries, so the government receives
its taxes as personal income tax (at 27-28%) instead of as corporate tax
at 35%.
Don't blame the corporations. They play by the rules (and loopholes)
enacted by congress. And don't blame the GOP; the dems have had 2 years
of power and I've seen no effort on their part to "fix" this situation.
And to repeat a previous post, this is all immaterial, as corporations
don't pay taxes; they pass their tax obligation through to their
customers in the pricing of their products.
David K Watson wrote:
So it's doesn't really settle the matter. On the contrary side,
according to a recent NY Times article that I am too lazy to look
up, a recent survey found that two thirds of american corporations
pay no taxes at all, and it appears that many of them do this by
reporting a disproportionate fraction of their worldwide expenses
on their US tax returns.
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