I found this interesting - just a short blurb:

http://news.yahoo.com/s/ap/20080812/...ons_income_tax

I read the same article in USA Today and know that if it was you or me they would be auditing us ASAP. If they went after these guys they could pay for more staff and upgrade their outdated computer system. Maybe even some training so you don't get twenty different answers for the same question. Once again the stupidity of how our government functions and doesn't' seem to know what is happening. Thanks for letting me vent.

There is something call: GROSS TAX RECEIPTS,(GTR) not used anymore, but all corporations should pay a minimum based on profits or GTR. But I see very little chance of that, like one in a trillion.

Obama has been talking about taxing the oil companies; maybe that reasoning should be taken once step further, and all large corporations that aren't paying federal income taxes, should be on the hook for a minimum amount.

Obama has been talking about taxing the oil companies; maybe that reasoning should be taken once step further, and all large corporations that aren't paying federal income taxes, should be on the hook for a minimum amount.
__________________________________________________ ______________________-

Let us not mix things up. The posted link NEVER MENTIONED OIL COMPANIES. I think if you will check, oil companies pay considerable taxes...facts is I can recall reading a report a few years ago that from late 70's to the middle of this decade they paid more taxes than they made profits.

PLEASE folks....check on the oil companies taxes paid before you get carried away with what is simply election year rhetoric !

For example,this is from a MONEY article dated April 29 of this year concerning Oil company profits.....

" sometimes get the impression that people think oil executives hold clandestine meetings where they unilaterally decide to set the price of oil and gas in order to maximize their profits. After maniacally laughing about how they are gouging the American public, they then go swimming in pools of gold ala Scrooge McDuck.

But there's a problem with that theory. Even though many oil companies are reporting record profits, many people forget just how expensive it is for energy companies to engage in the oil business.

The average net profit margin for the S&P Energy sector, according to figures from Thomson Baseline, is 9.7%. The average for the S&P 500 is 8.5%. So yes, energy companies are more profitable than many others...but not by an inordinate amount.

Google, for example, reported a net profit margin of 25% in its most recent quarter. Should we have an online advertising windfall profit tax? "

I am not posting a defense of corporations paying tax.....just when you start to add what Sen Obama has done to the facts on oil companies the discussion becomes much different !

Microsoft had a much bigger net profit than the oil companies...so lets have a windfall tax on computer usage !

Some companies don't pay tax because the tax laws allow them not to. There aren't any "loopholes, they do what the law allows. Who makes the laws? Congress passes the the Bills and the President signs them and the Bills become law. Both political parties are at fault!

Any change in the Tax Laws that causes someone, or a company, to pay additional tax is called (Heaven forbid!) a Tax Increase. Lord forgive me for even having such thoughts................... I'm sorry. Pleases forgive me...........

This doesn't comment one way or another on the situation of corporations paying taxes, but then neither did the article provide much other than some meaningless numbers. As the article admits "The GAO study did not investigate why corporations weren't paying federal income taxes or corporate taxes and it did not identify any corporations by name. It said companies may escape paying such taxes due to operating losses or because of tax credits."

Based on experience, I would not trust any findings by the GAO. The sole reason for the organization's existence is to find negatives. They will never do a study that says such and such organization or program is doing a good job. One has to read their entire report to get anything approaching balance. Their reports are titled and written for headlines. If the GAO issued a report that it was raining, I'd go outside to double check. Of course, they wouldn't say it was raining. They would claim "Government inaction allows mixture of elements to fail randomly from the sky drastically reducing xerotes among underprivileged."

TO MIKEH and MUNCLE

I agree with all your sentiments. The only reason I even posted was there was a mention of Sen Obama and I thought it was going to get political

TO MIKE H....you are so right on it is both parties fault whatever the reason and whatever the loss of revenue is. Both of you pointed out how general the study is and why they would not do a study like that and give some info on the REASONS is beyond me !

The purpose of all GAO reports is to report facts. It is up to others to analyze the facts and decide the "Whys". The "Whys" are arguable and there are as many opinions as there are people.

You said "The only reason I even posted was there was a mention of Sen Obama and I thought it was going to get political". Instigating a political free-for-all? LOL

Originally Posted by Lil Dancer

Obama has been talking about taxing the oil companies; maybe that reasoning should be taken once step further, and all large corporations that aren't paying federal income taxes, should be on the hook for a minimum amount.

Higher taxes on corporatons will mean higher prices to the consumer.

Corporations still have stockholders to appease and they want dividends (profits) for their investment. Any profits lost to the tax man only will be made up the traditional way - raising prices.

The thought that if corporations pay more tax, the individual will pay less is folly. The more money politicians have access to, the more is spent on pork projects to keep the politician in office.

Europeans have been saddled with income taxes, sales taxes, value-added taxes (VAT)and various corporate taxes. They thought the VAT would be the savior to the working class, and it did not happen.

In short, taxing someone/thing else more without a statutory corresponding reduction to balance the scales means governments get more to spend.

Here is a link to the entire GAO report..

Tax Administration: Comparison of the Reported Tax Liabilities of Foreign- and U.S.-Controlled Corporations, 1998-2005 GAO-08-957

http://www.gao.gov/new.items/d08957.pdf

Having been a "corporate executive" with a corporation that didn't pay one penny in federal income taxes for the entire 27 years I worked there, I know what would likely happen if they were suddenly presented with a tax bill--the prices of the products or services they were selling would be increased. Corporations would do everything they could to maintain their profit margins and dividend payout rates. The easiest way to do that would be to increase prices...to be paid by? You guessed it...us.

Having said that, I still think it's unconscionable that two-thirds of America's corporations don't pay any federal taxes while the IRS has come up with the Alternative Minimum Tax for individuals who were smart enough to have lots of income but have enough deductions and adjustments to avoid paying taxes. The individual can't escape. But because corporations hire lots of high-priced lobbyists to write bills and amendments for the Congress to pass, most can avoid paying any taxes at all.

There really is something wrong with that picture.

Originally Posted by Villages Kahuna

.....Having said that, I still think it's unconscionable that two-thirds of America's corporations don't pay any federal taxes while the IRS has come up with the Alternative Minimum Tax for individuals who were smart enough to have lots of income but have enough deductions and adjustments to avoid paying taxes. The individual can't escape. But because corporations hire lots of high-priced lobbyists to write bills and amendments for the Congress to pass, most can avoid paying any taxes at all.

There really is something wrong with that picture.

What's wrong with the picture is Congresspersons who complain that there are potential sources of additional government revenue and they (the Congresspersons) want more Monopoly Money to play with. The IRS has a lousy job - Find a way to get $10 from a $5 source, because Congress wants to spend $10 (and more). When the American public finally tells its representatives that "this is all you get" and make the most of it, then many arcane projects will get axed so that those moneys can be spent elsewhere. Otherwise, the tab just gets larger and larger....

I am going to ask some stupid questions here so keep your snickers and giggles to yourself but I am not sufficiently informed onthis stuff...so here goes...

1. Corporations that do not pay income taxes need to have "deductions" or credits to make that happen, and in most cases those deductions and/or credits have been allowed because they,on the surface, are good for the country(economy, etc). IS THIS TRUE ?

2. If it is true, the report does not delve into that. Does that not make the report a bit skewed ?

While I generally agree with most comments by STEVEZ and VILLAGE KAHUNA, I find it (the report) to be too much "black and white".

Thanks to whomever takes the time to educate me