Friday, November 18, 2011

The corporate tax plunge: Down, down, down / Andrew Leonard / Plus four more Economic Justice Articles By Salon

Thursday, Nov 17, 2011 1:00 PM 06:29:01 PST

The corporate tax plunge: Down, down, down

Since the 1950s, American companies have paid a steadily smaller percentage of their profits as taxes

Fred chart
(Credit: FRED)
We already know that compared to most rich countries in the world, corporations in the United States get off easy when it comes to taxes. We also know that many of the biggest American corporations don’t pay any taxes at all.
But if you are looking for one graphic illustration that speaks the most volumes about how great it’s been to be an American corporation over the past half-century, than you really must contemplate this chart put together by the St. Louis Federal Reserve Bank (Hat tip to Felix Salmon.)
Corporate income tax graph
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Andrew Leonard
Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard
Friday, Nov 11, 2011 9:01 AM 06:29:01 PST

How to solve the corporate tax problem

Our globalized economy creates too many loopholes for multinational firms. It's time to push for a universal system

(Credit: AP/Mary Altaffer)
This originally appeared on KeriAnn Wells' Open Salon blog.
The United States is teeming for tax reform. Obama speaks eloquently of the rich “paying their fair share” while Republicans pledge never to raise taxes. Warren Buffett is taxed less than his receptionist. Occupiers rally for the 99 percent, while Tea Partyers rally behind 9-9-9.
Meanwhile, 25 of the Forbes top 100 companies paid their CEOs more than they paid Uncle Sam in 2010. Some of the big names are GE, Prudential and Verizon, all of which paid their CEOs well over $10 million, but paid no income tax whatsoever.
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KeriAnn Wells is a Master of Public Policy Candidate at the University of California, Berkeley. More KeriAnn Wells
Thursday, Nov 3, 2011 9:37 AM 06:29:01 PST

Could the GOP actually be turning on Grover Norquist?

Dozens of House Republicans may be inching toward a confrontation with one of the most feared leaders on the right

Are congressional r's really thinking about raising taxes?
Grover Norquist (Credit: AP)
Grover Norquist, who runs a fervently anti-tax interest group in Washington, is best known for the simple pledge that Republican candidates for Congress have learned to ignore at their own electoral peril. Signatories vow that they will:
ONE, oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses; and
TWO, oppose any net reduction or elimination of deductions and
credits, unless matched dollar for dollar by further reducing tax rates.
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Steve Kornacki
Steve Kornacki is Salon's news editor. Reach him by email at and follow him on Twitter @SteveKornacki More Steve Kornacki
Thursday, Nov 3, 2011 4:45 AM 06:29:01 PST

America’s corporate tax obscenity

A new report about companies' finances won't just enrage you -- it'll make you run to the nearest protest

ows corporations
(Credit: Reuters/Jose Luis Magaua)
In 2010, Verizon reported an annual profit of nearly $12 billion. The statutory federal corporate income tax rate is 35 percent, so theoretically, Verizon should have owed the IRS around $4.2 billlion. Instead, according to figures compiled by the Center for Tax Justice, the company actually boasted a negative tax liability of $703 million. Verizon ended up making even more money after it calculated its taxes.
Verizon is hardly alone, and isn’t even close to being the worst offender. Perhaps most famously, General Electric raked in $10.5 billion in profit in 2010, yet ended up reporting $4.7 billion worth of negative taxes. The worst offender in 2010, as measured by its overall negative tax rate, was Pepco, the electricity utility that serves Washington, D.C. Pepco reported profits of $882 million in 2010, and negative taxes of $508 million — a negative tax rate of 57.6 percent.
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Andrew Leonard
Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard

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