69% of Corporations Tax-Exempt

[Redfish]

The Crash on Wall Street and jobs going over seas is caused by a liberal mind set.

No - It's caused by the Bush tax code!

really, then why did obama continue it?

 

[Redfish]

I heard the latest is $2.6T or so.

Yikes!

Exactly....their actions are bordering on treasonable. American.Companies fucking Americans and America in general.

please change the word "companies" to "government" then you will have it right.

 

[BillyV]

.
The percentage of U.S. corporations organized as nontaxable businesses has grown from about 24 percent in 1986 to about 69 percent as of 2008, according to the latest-available Internal Revenue Service data.

By some estimates, more than 60 percent of U.S. businesses with profits of $1 million are structured as pass-throughs, the highest rate among developed countries.

Paul Buchheit 13 May 2013:Corporations Stopped Paying

Which means that they were organized as LLC's or as Sub Chapter S Corporations instead of regular corporations. This in turn means that all of the income of the entity is attributed to the individual owners and they must pay taxes thereon, even if the profits are retained by the entity for expansion or investment.

These entities are usually small business operations with less than 30 owners. The primary reason for the choice of entity is based primarily upon liability concerns. The growth in the # of businesses adopting this type of entity is directly attributable to the relaxation of rules governing LLC's which were generally unheard of 30 years ago. It is true that there are some very large LLC's... however these large LLC's are invariably composed of members who are themselves large taxpaying corporations. They use the LLC stucture in lieu of having a joint venture status, which was more common in the past. In most instances LLC's are merely small businesses... and Sub Chapter S corporations are necessarily small businesses. So the issue is not if the the profits are being taxed, but who is responsible for paying taxes on the profits.

Absolutely correct on LLCs, and S corporations cannot have more than 100 shareholders, so are by definition "small business". Interesting that the OP references 1986 as the base year; the Tax Reform Act of 1986 was what caused much of the rush to S corporations. In 1986 the top individual rate was 50% and the top corporate rate was 46%; the Act reduced those rates to 28% for individuals and 34% for corporations. As there was not only a 6% variance in the top rate but the corporation faced double taxation of dividends, many eligible regular corporations changed to S corporation status. Even when the rates were revised to eliminate the variance in the top rate, S corporation formation still grew to avoid the double taxation issue. The bottom line - taxes are paid on S corporation and LLC income just as they are paid on corporate income - they are just paid by the individual owners instead of by the corporation. Therefore, the reduction in corporate taxes paid led necessarily to an increase in personal taxes paid. So what's the problem?

 

[Steelplate]

The Crash on Wall Street and jobs going over seas is caused by a liberal mind set.

No - It's caused by the Bush tax code!

really, then why did obama continue it?

Why did Obama CONTINUE it? How many times did he try to change it? Do you lie to yourself often?

 

[Redfish]

No - It's caused by the Bush tax code!

really, then why did obama continue it?

Why did Obama CONTINUE it? How many times did he try to change it? Do you lie to yourself often?

obama continued the Bush tax rates, they are still in effect today. He never tried to change it except to put a punative tax on the wealthy.

I have no problem with making the rich pay more, but that will not fix the economy. Its just another class warfare technique to keep the country divided.

why do you think he keeps stirring the race pot, the sex pot, the age pot, the immigration pot? its called divide and conquer, and its a basic tenet of the marxist plan.

 

[Darkwind]

It always amazes me that posters who go on and on about freeloaders and welfare cheats seem to have no problem with corporations freeloading or cheating.

Is there a reason why companies should not pay their fare share?

Is this what Romney meant by the 47%?

What a laugh....

Based on this information (and it is very questionable), where are they cheating? And who determines what their fair share is. You?

 

[Redfish]

For you libs:

since you all hate corporations and corporate tax rates and exemptions, why not look into which party put them in place?

take a look at which party has controlled congress for most of the last 75 years and which party has written the bills that give special tax treatment to certain corporations?

If you do a sincere search, you will find that its the democrat party that is responsible for most of the loopholes and special deals that you claim to hate.

 

[KissMy]

The Crash on Wall Street and jobs going over seas is caused by a liberal mind set.

No - It's caused by the Bush tax code!

really, then why did obama continue it?

Obama lowered the payroll tax & added health-care tax to dividends. It was not enough to get the rich to pay the same rate as the workers but it was a start. Republicans ended the payroll tax cut hitting each worker with an extra $2,500 in taxes. We need to end the subsidy by cutting workers taxes or raising tax on dividends to the rich. Subsidizing the rich destroyed the economy & it won't recover until we end the subsidy.

Rich people like Mitt Romney only paid 13% tax while workers paid double plus payroll taxes. Companies are better off to fire the highly taxed US workers & send jobs out of here. We need to lower tax on workers & small business or raise them on the rich & big business. Take your pick, but end the tax subsidy to the rich who destroyed the economy.

 

[Missourian]

Businesses don't pay taxes. They price-in the tax rate and pass it on to the consumer.

That is a lie. All corporate tax is not passes on to consumers.

Small business pays taxes that big business does not pay. We have a regressive tax system that subsidize big business & rich people. The US has the lowest upward mobility rate in the western world because the rich pay lower tax rates than the workers who produce the wealth.

Not at all.

I've run my small business for 15 years...I know my approximate tax liability and I price it in to the amount I charge for services rendered in the same way I price in insurance, fuel, repairs and maintenance.

Every small business owner who understands his bottom line does the same.

The end user pays the tax via pass though. That's a fact.

 

[KissMy]

Businesses don't pay taxes. They price-in the tax rate and pass it on to the consumer.

That is a lie. All corporate tax is not passes on to consumers.

Small business pays taxes that big business does not pay. We have a regressive tax system that subsidize big business & rich people. The US has the lowest upward mobility rate in the western world because the rich pay lower tax rates than the workers who produce the wealth.

Not at all.

I've run my small business for 15 years...I know my approximate tax liability and I price it in to the amount I charge for services rendered in the same way I price in insurance, fuel, repairs and maintenance.

Every small business owner who understands his bottom line does the same.

The end user pays the tax via pass though. That's a fact.

It is not a fact. The market does not let you raise prices to cover your taxes. If you raise prices sales will go down. Big corporations pay lower tax rates than your small business does. Raising taxes eats into their profits, it does not all pass through.

If we lower payroll & income taxes on US workers, prices fall & profits rise only for business that employ US workers. If we lower payroll tax & raise dividend taxes it will help business who employ US citizens & hurt those that outsource jobs.

 

[Steelplate]

really, then why did obama continue it?

Why did Obama CONTINUE it? How many times did he try to change it? Do you lie to yourself often?

obama continued the Bush tax rates, they are still in effect today. He never tried to change it except to put a punative tax on the wealthy.

I have no problem with making the rich pay more, but that will not fix the economy. Its just another class warfare technique to keep the country divided.

why do you think he keeps stirring the race pot, the sex pot, the age pot, the immigration pot? its called divide and conquer, and its a basic tenet of the marxist plan.

It's not "class warfare". It's a 4% increase on the people who can most afford it. Those revenues can provide jobs...good paying jobs..which will in turn increase the number of people into the Middle Class...which makes more tax revenue across the board.

We can't keep marginalizing the workforce...the private sector sure isn't trying to fix the problem...they just keep demanding more...lower wages, more tax breaks, lower tax rates than they already pay....when is it enough? I mean I even hear people talking about abolishing the minimum wage....how's that going to help the country? Low income people can't afford to live in this country now without government assistance.

You guys keep talking about Marxism, but yet support an ideology that screws 80% or more of the country in favor of 1 or 2% who aren't doing shit to help the situation and don't plan to. That's the kind of environment that breeds dissent and opens the door for stuff like that to take root.

 

[akelch]

That is a lie. All corporate tax is not passes on to consumers.

Small business pays taxes that big business does not pay. We have a regressive tax system that subsidize big business & rich people. The US has the lowest upward mobility rate in the western world because the rich pay lower tax rates than the workers who produce the wealth.

Not at all.

I've run my small business for 15 years...I know my approximate tax liability and I price it in to the amount I charge for services rendered in the same way I price in insurance, fuel, repairs and maintenance.

Every small business owner who understands his bottom line does the same.

The end user pays the tax via pass though. That's a fact.

It is not a fact. The market does not let you raise prices to cover your taxes. If you raise prices sales will go down. Big corporations pay lower tax rates than your small business does. Raising taxes eats into their profits, it does not all pass through.

If we lower payroll & income taxes on US workers, prices fall & profits rise only for business that employ US workers. If we lower payroll tax & raise dividend taxes it will help business who employ US citizens & hurt those that outsource jobs.

Not that simple...

 

[akelch]

Think about it.
ANY cost that a business takes on must be weighted to the profit they can get in return. Including ... Wages, material cost, utilities, property, and yes taxes.

The company will add all this into the price of their product or service. Some costs are fix like gas, utilities, and taxes.

If the cost gets too high that the market can not bare it....then you go out of business.

So anytime you play around with raising taxes on some and lowering (or subsidizing) others your are artificially manipulating the market. Picking winners and losers. Thus the reason we have lobbyist in Washington. The more influence you have the more you can benefit. So larger companies can afford more lobbyist.

We need to get away from the thought that the government can control the market place. It is too complex and they can be bought.

The Fair Tax takes that power away from Washington...thus companies have to compete to survive.

 

[Vandalshandle]

I have absolutely no problem with corporations building in their taxes into their pricing structure. That way, the people who buy (consume) the most, pay the most taxes. I am retired on fixed income. If my car were to die tomorrow, I would proably buy a used one, and would pay a sales tax of 9% of the value of the $10,000 used car that I would buy to replace it. The guy down the street would pay the same 9% on the value of his $80,000 new Corvette plus his share of whatever GMC owed the government in income taxes. This is as it should be, since he can afford that kind of car, and that kind of tax, and I can not...at least if I want to continue to live in my house and eat every day. In addition to that, the infastructure that is funded by the various government entities which that corporation depends on in order to do business should be paid for through the corporation, by that corporation's customers. If those customers do not want to pay for the infastructure that allowed that Corvette to be built in the USA, then they should also consider trading down to a Chevy Impala and save a few bucks. If they can not afford a GMC car at all, then they can buy a Chinese motor scooter, where the industrialized, unchecked air and water pollution is so bad, because China does not hold their manufactuers financially responsible for the infastructure breakdown that is occuring over there.

 

[Star]

For you libs:

since you all hate corporations and corporate tax rates and exemptions, why not look into which party put them in place?

take a look at which party has controlled congress for most of the last 75 years and which party has written the bills that give special tax treatment to certain corporations?

If you do a sincere search, you will find that its the democrat party that is responsible for most of the loopholes and special deals that you claim to hate.

.
America did pretty well when tax revenues were high. In the early 1980's that formula began to change, individual income tax rates combined with payroll taxes began to rise exponentially, leaving consumers with less money to circle back into the economy. Simultaneously, corporate income taxes and excise taxes share of revenue decreased, leading to the biggest disparity of wealth since 1928 which lead to the 2nd greatest economic collapse in American history.

Excerpted from "Tax Policy Center"

The Numbers: What are the federal government’s sources of revenue?

Individual income taxes and payroll taxes accounted for 82 percent of all federal revenues in fiscal year 2010. Corporate income taxes contributed another 9 percent. Excise taxes, estate and gift taxes, customs duties, and miscellaneous receipts (earnings of the Federal Reserve System and various fees and charges) made up the balance. The composition of tax revenue has changed markedly over the past half century. The share coming from individual income taxes has remained roughly constant, while payroll taxes have accounted for a larger share and corporate income and excise taxes smaller shares.

• In 2010 the federal government collected $2.2 trillion, an amount equal to 14.9 percent of GDP. Federal revenue has ranged from 14.4 of GDP in 1950 to 20.6 percent in 2000 over the past five decades, averaging 17.9 percent.

• The individual income tax has been the largest single source of federal revenue since 1950, averaging 8 percent of GDP.
• Payroll taxes swelled following the creation of Medicare in 1965. Taxes for Medicare, combined with periodic increases in Social Security taxes, caused payroll tax revenue to grow from 1.6 percent of GDP in 1950 to 6 percent or more since 1980. Payroll taxes also include railroad retirement, unemployment insurance, and federal workers’ pension contributions.
• Revenue from the corporate income tax fell from between 5 and 6 percent of GDP in the early 1950s to 1.3 percent of GDP in 2010.
• Excise taxes fell steadily throughout the same period, from nearly 3 percent of GDP in 1950 to 0.5 percent in recent years.
• The remaining sources of revenue have fluctuated less, together claiming between 0.5 and 1.0 percent of GDP since 1950 and standing near the bottom of that range in 2010.
• 
  
  
  
• Changes in the shares of the various taxes in total federal revenue reflect these historical shifts. The individual income tax has consistently provided nearly half of total federal revenue since 1950, while other revenue sources have waxed and waned. Excise taxes brought in 19 percent of total revenue in 1950 but only about 3 percent in recent years. The share of revenue coming from the corporate income tax dropped from about one-third in the early 1950s to less than a tenth in 2010. In contrast, payroll taxes provided two-fifths of revenue in 2010, four times its one-tenth share in the early 1950s.

.

 

[Wyatt earp]

I have absolutely no problem with corporations building in their taxes into their pricing structure. That way, the people who buy (consume) the most, pay the most taxes. I am retired on fixed income. If my car were to die tomorrow, I would proably buy a used one, and would pay a sales tax of 9% of the value of the $10,000 used car that I would buy to replace it. The guy down the street would pay the same 9% on the value of his $80,000 new Corvette plus his share of whatever GMC owed the government in income taxes. This is as it should be, since he can afford that kind of car, and that kind of tax, and I can not...at least if I want to continue to live in my house and eat every day. In addition to that, the infastructure that is funded by the various government entities which that corporation depends on in order to do business should be paid for through the corporation, by that corporation's customers. If those customers do not want to pay for the infastructure that allowed that Corvette to be built in the USA, then they should also consider trading down to a Chevy Impala and save a few bucks. If they can not afford a GMC car at all, then they can buy a Chinese motor scooter, where the industrialized, unchecked air and water pollution is so bad, because China does not hold their manufactuers financially responsible for the infastructure breakdown that is occuring over there.

But it is unfair then. That you could only buy a $10,000 dollar car and he gets to buy a brand new $80,000 dollar car. The goverment should step in take both your money and give you both a $40,000 dollar car minus the governments cut. lol

 

[Star]

I think your 80% is high, but the number of people below the poverty line is higher than ever before under obama, more on food stamps than ever before. ain't liberalism great?

Don't blame liberalism...it wasn't liberalism that sent good paying jobs to sweatshop countries. It wasn't liberalism that caused the Wall St. Crash, and it certainly wasn't liberalism that's s holding on to $2.? Trillion dollars and refusing to lend for small businesses or investing it here...oh yeah...and it wasn't liberalism that fought a war on terror on two fronts and cut taxes on top of it...leaving it for the next guy to deal with.

Liberalism is EXACTLY to blame for the financial meltdown. Just what do you think was in those worthless securities? Through its efforts to increase minority home ownership, the federal government created a market for subprime loans which created an unsustainable housing price bubble and subsequent crash of financial institutions and the economy. Don't you understand that banks are required to maintain certain reserves in order make loans? When the value of those reserves collapsed, they were not permitted to make further loans, which was further exacerbated by the new Dodd-Frank restrictions. Aren't your Wall Street Greed bumper stickers getting a little faded?

.

Hmmm, are you referencing that uber-liberal George W. Bush?


WASHINGTON — "We can put light where there's darkness, and hope where there's despondency in this country. And part of it is working together as a nation to encourage folks to own their own home."
- President George W. Bush, Oct. 15, 2002


From his earliest days in office, Bush paired his belief that Americans do best when they own their own homes with his conviction that markets do best when left alone. Bush pushed hard to expand home ownership, especially among minority groups, an initiative that dovetailed with both his ambition to expand Republican appeal and the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards.
.

 

[Polk]

Businesses don't pay taxes. They price-in the tax rate and pass it on to the consumer.

That's a cute line. Too bad it isn't true.

 

[lynn63]

The IRS has made little progress in getting those people that put their money in offshore accounts. There has been a sharp increase in tax exempt organizations since Obama took office. Corporate taxes have decreased over the years.

It is now on the shoulders on people who pay taxes through their employer that is supporting this entire country plus paying for everyone's healthcare.

 

[akelch]

Businesses don't pay taxes. They price-in the tax rate and pass it on to the consumer.

That's a cute line. Too bad it isn't true.

Yes it is. Companies collect taxes...they don't pay them.