13 Mindblowing Facts About America's Tax-Dodging Corporations
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That's because Delaware has very generous tax rules - and, as a result, is home to more than half of all the corporate subsidiaries in the United States. That's startling, since only 1/342th of the nation's population lives in that state (917,092 residents, out of a national total of 313,914,040, according to the latest census results).
7. Conservatives complain about the "official" corporate tax rate in this country, but corporations actually pay roughly one-third of the official rate in actual taxes.
The official, or "statutory," corporate tax rate is 35 percent. But the actual rate paid by American corporations is only 12 percent, less than that paid by many middle-class Americans.
(Source: The FACT Coalition.)
In fact, US Corporations pay less tax as a percentage of the GDP than corporations in Canada. Or Japan ...
... or South Korea. Or Norway. Or Luxembourg, New Zealand, Israel, the Czech Republic, Sweden, Belgium, Switzerland, the United Kingdom, Denmark, Finland, and Italy.
(Source: OECD StatsExtract interactive database.)
8. Corporations used to pay 30 percent of Federal taxes, and now they pay less than 7 percent!
That's because the corporate tax rate has plunged since Dwight D. Eisenhower was President and is now the lowest it's been in modern history.
(Source: FACT Coalition.)
9. Big corporations paid $216 million to Congress and got $223 billion in tax breaks!
As Citizens for Tax Justice and USPIRG reported, 280 large and profitable corporations contributed $216 million to Congressional campaigns over four election cycles and got nearly a quarter of a trillion dollars in tax breaks.
That's a terrific investment for them - a return of more than a thousand to one - but it's a bad deal for the American people.
10. We don't even know who owns some corporations, even though that makes it easier to evade taxes, dodge creditors, avoid paying alimony or child support, and even fund terrorism!
Here are some examples of investments that might represent a terror threat. Corporate interests are blocking disclosure rules that would help protect our national security.
11. Bank of America committed foreclosure fraud, was bailed out by the government, and then paid no taxes on $4.4 billion in profit!
That's right. In 2010, while BofA was negotiating a sweet settlement deal for its foreclosure fraud, it paid nothing in taxes. (Source: FACT Coalition.) Zero, on $17.2 billion in offshore earnings. (Source: Americans for Tax Fairness.)
Its $4.1 billion tax break came on the heels of the bank's taxpayer-funded bailout, immunity from prosecution for its criminal employees, and a cushy government settlement for its foreclosure fraud.
Now David Dayen reports that the bank has apparently continued to defraud customers in violation of its government settlement. Whistleblowers have stated in affidavits that they were "told to lie" to customers, continued to deceive homeowners before foreclosing on them, and flipped customers to new servicing companies to invalidate previous homeowner agreements.
12. What they call "tax reform" would actually prevent our elected representatives from giving businesses financial incentives to improve our lives!
The word "reform" is an honorable one that's been put to some dishonorable uses lately. "Entitlement reform," for example, is merely a euphemism for gutting Social Security and Medicare.
Similarly, corporate-backed politicians are pushing a formula for permanent corporate tax breaks and calling it "tax reform." They insist their "reform" be "revenue neutral" and say it will "broaden the base while lowering the rate."
Here's an English translation: The current, unsustainably low rates for corporations would be made permanent, while eliminating many tax deductions in the name of "simplification."