About America’s “High” Corporate Tax Rate
This would be our Tweet of the Day:
Here is the article Nouriel linked to:
It has become a bipartisan article of faith in some quarters that the income tax on U.S. corporations must be lowered.
But for many large U.S. companies, the burden of U.S. taxation pales in comparison with what they pay their chief executives, according to a study released Wednesday by the Institute of Policy Studies, a liberal think tank.
Of last year’s 100 highest-paid corporate executives in the United States, 25 earned more in pay than their company recorded as a tax expense in 2010.
Those 25 firms reported average global profits of $1.9 billion. Among the 25 were Verizon, Bank of New York Mellon, General Electric, Boeing and eBay.
“These individual CEOs are being rewarded for presiding over companies that dodge taxes,” said Chuck Collins, one of the study’s co-authors and a senior scholar at the Institute of Policy Studies.
For example, Bank of New York Mellon paid its chief executive Robert Kelly $19.4 million last year, while the company got $670 million in what amounted to a tax refund, according to the report.
The rich sure have gotten their money’s worth when it comes to their lobbyists. The system is rigged to give them every break imaginable. I mean, how in the world did We the People end up giving the Bank of New York Mellon $670 million?
And then there’s this:
Verizon, for instance, saw the equivalent of a $705 million refund in 2010 because it deferred paying taxes on the bulk of its income to future years. The company’s total tax bill from 2010 was about $2.5 billion. The delay in tax payments allowed the firm to make investments in the nation’s technology infrastructure, a company official said.
“Verizon fully complies with all tax laws and pays its fair share of taxes,” its spokesman, Robert A Varettoni, said.
But Scott Klinger, a co-author of the report, said the ability of corporations to push off tax bills is unfair. Ordinary Americans “don’t get to just defer our taxes until next year or 2030 or whenever they come due,” he said.
My point exactly, because D.C. doesn’t work for “ordinary Americans” anymore. The rich have curried such favor with Washington that they’re actually staying within the law (that their lobbyists wrote, no doubt) when they get these amazing breaks. That has got to change.