NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

Maybe I should incorporate to reduce my tax. The country is massively in debt and our patriotic companies profit and pay no tax. Smells like something is rotten in America.

FTB website

That is why California post's this. One high profile name has since settled the debt. The other is still there.

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Pluto will always be a planet to me.

Seti Ambassador
Not to late to order an Anni Shirt

NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

Maybe I should incorporate to reduce my tax. The country is massively in debt and our patriotic companies profit and pay no tax. Smells like something is rotten in America.

A) You should be thrilled--that's the tax code that your swell gov't wrote, knowingly and willingly. They do it on purpose in order to facilitate economic activity.

B) It doesn't really matter whether companies pay tax or not, because any taxes that they would or do pay are passed directly to the consumer in the form of higher prices. Just like sales taxes at the point of sale, corporate taxes are no different--the consumer pays every single dime. The companies know almost to the penny what they would pay at the end of any given year and that amount is added into the wholesale price of the item or service in question.

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Cordially,
Rush

elrushbo2@theobviousgmail.com
Remove the obvious...

NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

Maybe I should incorporate to reduce my tax. The country is massively in debt and our patriotic companies profit and pay no tax. Smells like something is rotten in America.

A) You should be thrilled--that's the tax code that your swell gov't wrote, knowingly and willingly. They do it on purpose in order to facilitate economic activity.

B) It doesn't really matter whether companies pay tax or not, because any taxes that they would or do pay are passed directly to the consumer in the form of higher prices. Just like sales taxes at the point of sale, corporate taxes are no different--the consumer pays every single dime. The companies know almost to the penny what they would pay at the end of any given year and that amount is added into the wholesale price of the item or service in question.

Overall, I agree with you. :]] (surprised? LOL)

Re A): There is never widespread agreement with the tax laws, no matter who pays more or what the system is. That's because everyone wants someone else to pay the taxes.

Re B): I agree mostly, but then business has a reciprocal duty to employ Americans, to contribute to the public good by making employee pension plan payins, by making some charitable contributions to the community, and so forth.

A company that farms out most of its work offshore, that doesn't contribute in any way to the country it makes income in...such a company is not of much use...and should be more heavily taxed if practicable. imho.

Quid pro Quo: something for something.

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Re A): There is never widespread agreement with the tax laws, no matter who pays more or what the system is. That's because everyone wants someone else to pay the taxes.

Agreed, but not knowing the basics of the tax system fails a lot of people. "Someone else" never pays the taxes, they do.

Re B): I agree mostly, but then business has a reciprocal duty to employ Americans, to contribute to the public good by making employee pension plan payins, by making some charitable contributions to the community, and so forth.

This has no bearing. Just as the consumer pays all the taxes, the consumer pays the "charitable contributions" as well. Everything is passed directly to the consumer in the form of a higher price. Similarly, the employee pays 100% of their pension plan (health care plan, child care, any and all perquisites) as well, it just comes out of their total compensation. What is left after all of that is what they receive in their check.

A company that farms out most of its work offshore, that doesn't contribute in any way to the country it makes income in...such a company is not of much use...and should be more heavily taxed if practicable. imho.

Whatever. If it sells its products and services, it raises the standard of living for those that willingly give the company their business. Tax it, and you raise the cost of its items, thus hurting those that can afford it the least, as the product is priced out of their ability to afford it.

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Cordially,
Rush

elrushbo2@theobviousgmail.com
Remove the obvious...

standard of living defined by whom

NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

Maybe I should incorporate to reduce my tax. The country is massively in debt and our patriotic companies profit and pay no tax. Smells like something is rotten in America.

A) You should be thrilled--that's the tax code that your swell gov't wrote, knowingly and willingly. They do it on purpose in order to facilitate economic activity.

B) It doesn't really matter whether companies pay tax or not, because any taxes that they would or do pay are passed directly to the consumer in the form of higher prices. Just like sales taxes at the point of sale, corporate taxes are no different--the consumer pays every single dime. The companies know almost to the penny what they would pay at the end of any given year and that amount is added into the wholesale price of the item or service in question.

Overall, I agree with you. :]] (surprised? LOL)

Re A): There is never widespread agreement with the tax laws, no matter who pays more or what the system is. That's because everyone wants someone else to pay the taxes.

Re B): I agree mostly, but then business has a reciprocal duty to employ Americans, to contribute to the public good by making employee pension plan payins, by making some charitable contributions to the community, and so forth.

A company that farms out most of its work offshore, that doesn't contribute in any way to the country it makes income in...such a company is not of much use...and should be more heavily taxed if practicable. imho.

Quid pro Quo: something for something.

Ah yes, multiply the deducions by the percent of spending in the US. The problem is then every US corporation is going to see the same line on every non-us tax return they fill out. It is called protectionism. Now maybe a green tax based on how many miles the product is transported?

Now something more interesting might be length of patents. Say make 100% in the country and sell 100% in the country and grant some more time on the patent. Build it off shore and sell if off shore and you get less time. This probably violates some treaty, but nice to fantasize about.

Going along the same road, consider medical things. Companies have a very strong incentive to find treatments rather than cures. Treatments means they can sell the same thing over and over. A cure means they sell it once. Government policy should favor cures over treatments. Say a patent for a cure runs 50 years and a treatment runs 5.

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Companies have a very strong incentive to find treatments rather than cures.

Three cheers for corruptism... err, I mean capitalism... ;)

(But let's not forget our sound-bytes, 'It's the only system that works'.)

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It may not be 1984 but George Orwell sure did see the future . . .