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Post by redwolf on Aug 12, 2008 7:45:33 GMT -6
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Post by psychecc on Aug 15, 2008 14:33:22 GMT -6
[quote author=bws board=corporations thread=3688 post=11427 time=1218548733
WASHINGTON - Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress. [/quote]
You'd never know it to listen to them moan about their high corporate tax rates all the time. I watch a lot of CNBC, and it's hard to go a day without a pity party over it.
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Post by agito on Aug 15, 2008 18:38:35 GMT -6
.... ok- as much as this statistic reinforces a cause i rally for. lets get it correct:
Two-thirds of U.S. corporations paid no federal income taxes FOR ONE YEAR between 1998 and 2005, according to a new report from Congress.
the opposition is ignorant- not us...
i hope
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Post by judes on Aug 15, 2008 19:24:33 GMT -6
From the GAO report: (FCDC refers to Foreign Controlled Domestic Companies, USCC means US Controlled Companies) www.gao.gov/new.items/d08957.pdf"In the 8 years from 1998 through 2005, large FCDCs in a panel data set that we analyzed consisting of tax returns that were present in the SOI corporate files in every year were more likely to report no tax liability over multiple years than large USCCs in the same panel data set. As figure 2 shows, about 72 percent of FCDCs and 55 percent of USCCs reported no tax liability for at least 1 year during the 8 years. About 57 percent of FCDCs and 42 percent of USCCs reported no tax liability in multiple years—2 or more years—and about 34 percent of FCDCs and 24 percent of USCCs reported no tax liability for at least half the study period—4 or more years. A correspondingly higher percentage of USCCs reported a tax liability in all 8 years, 45 percent for USCCs and 28 percent for FCDCs."Look at table 1 in the appendix, I tried to copy it here but couldn't get it sized big enough to be legible. At least 61% to 71% of all the FCDCs and USCC's in each of the study years reported 0 tax liabilities. It may not have been the same companies in each of these years, but each year on average 2/3's of the companies reported 0 tax liability.
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Post by unlawflcombatnt on Aug 16, 2008 0:15:18 GMT -6
"Dorgan and Levin have complained about companies abusing transfer prices — amounts charged on transactions between companies in a group, such as a parent and subsidiary. In some cases, multinational companies can manipulate transfer prices to shift income from higher to lower tax jurisdictions, cutting their tax liabilities...."
Here's more on transfer prices from the article posted by Judes:
"Transfer prices are the prices related companies, such as a parent and subsidiary, charge on intercompany transactions. By manipulating transfer prices, multinational companies can shift income from higher to lower tax jurisdictions, reducing the companies’ overall tax liability. As we noted in our previous reports, researchers acknowledge that transfer pricing abuses may explain some of the differences in tax liabilities of foreign-controlled corporations compared to U.S.-controlled corporations. However, researchers have had difficulty determining the exact extent to which transfer pricing abuses explain the differences due to data limitations."
The cholesterol-lowering drug Lipitor (atorvastatin), one of the most profitable drugs sold in the US, is manufactured in Ireland by Pfizer. The manufacturer sells it to an Irish subsidiary for a huge profit, but pays little Corporate tax on it since Ireland has very low Corporate taxes. The subsidiary then sells it in the US for a relatively small profit, and only has to pay US Corporate taxes on that small US profit.
This is a complete scam. Worse still, Lipitor is still on patent, it's covered by Medicare, and sells for $85-$100/month. (Meanwhile, other generic 'statins', such as pravastatin, cost as little as $10/month. )
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