What the Top US Companies Pay In Taxes

theodp writes "If you've ever wondered how it's possible that you pay more to the IRS than General Electric, Forbes has an explanation. You, my friend, do not have the tax benefit of overseas operations. Microsoft, for example, has its overseas subsidiaries license software to its US parent company in return for handsome royalties that get taxed at lower overseas rates. Exxon limits its tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda, and the Cayman Islands that shelter cash flow from operations in the likes of Angola, Azerbaijan, and Abu Dhabi. As a result, of the $15B it paid in income taxes last year, Exxon paid none of it to Uncle Sam, and has tens of billions in earnings permanently reinvested overseas. Likewise, GE has $84B in overseas income parked indefinitely outside the US. Now quit your carping and get back to filling out that 1040!"

Comments

Transaction Tax would fix this

[ForexCoder]

We need to switch to a transaction tax like http://www.apttax.com/ This would make sure that corporations like those paid their fair share of the taxs.

Re:So, what now?

[ThreeGigs]

Aside from my reluctance to take financial wisdom seriously from someone who uses "payed" instead of "paid", (sank / sunk notwithstanding) you seem to be forgetting the huge number of corporations who _aren't_ listed on the stock exchange, and who don't pay dividends. Lowering corporate tax rates would take a huge chunk of income away from the US, and do little to encourage companies to move back from... say.. Ireland, with its 12.5% rate.

Oh, and the way most companies avoid paying taxes? They expand. Got 10 million in profit you don't want to pay taxes on? Open some new locations. Do R&D. Hire some more people. Basically incur expenses. That 40% tax rate you disparage so offhandedly is responsible for influencing decisions that generally lead to more jobs.

Re:If I could do it, I would!

[Billly Gates]

Abolishing the corporate income tax sounds great in theory. ... especially if your a conservative economist.

However, Ireland which is Europe's version of India due to its low 12% corporate income tax (lowest in world) is about to join Greece in going bankrupt. We are already under suffocating debt. Cutting spending wont get the income needed to pay for a basic government.