Almost two-thirds of companies in the U.S. don’t pay income taxes.

This is annoying to say the least:

Most companies in US avoid federal income taxes – News from The Associated Press

More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million U.S. companies, or 66.7 percent of them, paid no income tax, the GAO said. Combined, the companies had $2.5 trillion in sales. About 25 percent of large U.S. corporations – those with at least $250 million in assets or $50 million in receipts – did not pay corporate taxes.

The GAO said it analyzed data from the Internal Revenue Service, examining samples of corporate returns for the years 1998 through 2005. For 2005, for example, it reviewed 110,003 tax returns from among more than 1.2 million corporations doing business in the U.S.

Of course this has been the case for awhile and being reminded of it now probably won’t change anything, but there’s always the hope that it’ll annoy enough people to maybe get a few laws changed. Imagine how well the economy would be doing if the tax burden wasn’t solely carried by citizens.

8 thoughts on “Almost two-thirds of companies in the U.S. don’t pay income taxes.

  1. I saw the article a day or so ago, and wondered how many of that 2/3 are Really Small corporations, primarily established as a way to financially shield the “owners” .. unlike sole proprietorships; limited partnershipe; et al.

    It’s possible that the 2/3 which pay zero taxes are tiny, feeble little things that don’t amount to a Hill-o-beans in the first place.

    Then again, I could be 180 degrees off base.

  2. rasta:

    You do not get the point..  Get enough of these “tiny, feeble” businesses to pay taxes, and it adds up.

  3. Companies just regard income taxes as a cost of doing business and pass it on to consumers, who end up carrying the burden anyway. 

    I would like to see a credible carbon tax.  All of a sudden green technologies would start to look a lot more competitive if carbon costs weren’t externalized to the commons.

  4. yeah, its sad that people dont pay taxes, espically businesses, and here everyone is complaining on where tax money is spent and such and such, starts to make you wonder what the point of everything is?

  5. When this country was founded, private citizens did not pay taxes.  The federal government was funded by taxes on imports and interstate commerce.  I wish we could go to a system more in line with that plan.

  6. We could use that extra cash in our pockets to get Chinese and Spanish language lessons!

  7. Like Joey said. And the author of the Income Tax Amendment was a senator that few people would recognize today, Senator Nelson Aldrich. Has anyone heard of Nelson Aldrich Rockefeller? Yep – his grandfather. Now, why would the rich support a tax that THEY had to pay? HELLO! The purpose of the income tax is to keep the poor from becoming wealthy, that and to pay the interest on the national debt (loaned to the government by the rich). Guess what? It’s working!  wink

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