Sanders: 'Your $8.99 Netflix subscription is more than the company paid in federal income taxes

Feb 2006
15,207
3,642
California
Yes, so let's make American corporate tax policy even more punitive because that will make Amazon decide to leave more income in the US, right?
OOOHHH is it about stock?


The complete list is at https://itep.org/notadime.

An in-depth analysis of Fortune 500 companies’ financial filings finds that at least 60 of the nation’s biggest corporations didn’t pay a dime in federal income taxes in 2018 on a collective $79 billion in profits, the Institute on Taxation and Economic Policy said today.

If these companies paid the statutory 21 percent federal tax rate, they would owe $16.4 billion in federal income taxes. Instead, they collectively received $4.3 billion in rebates. The analysis, Corporate Tax Avoidance Remains Rampant under New Tax Law, examines 2018 corporate financial filings that have been released to date. It provides an initial, comprehensive look at how corporate tax cuts under the 2017 Tax Cuts and Jobs Act affected the tax-paying habits of corporations.

“For years, corporations have manipulated the system to avoid paying taxes, and it’s clear that the 2017 tax law did nothing to change this,” said Matthew Gardner, a senior fellow at ITEP and lead author of the report.

The tax-avoiding corporations are some of the most profitable, recognizable companies in the world, and they represent a variety of industries, including technology, energy and gas, financial services, aviation, pharmaceutical and manufacturing. Earlier this year, ITEP reported Netflix and Amazon paid no federal taxes. Other companies on this list include Chevron, Delta Airlines, Eli Lilly, General Motors, Gannett, Goodyear Tire and Rubber, Halliburton, IBM, Jetblue Airways, Principal Financial, Salesforce.com, US Steel, and Whirlpool. The complete list is at https://itep.org/notadime.

These companies avoided taxes by employing a variety of legal tax breaks. Accelerated depreciation allows companies to write off the cost of their investments much faster than these investments wear out. This break accounted for hundreds of millions in tax write-offs. Chevron alone, for example, reported $290 million in accelerated depreciation, and Halliburton reported $320 million.

Stock options provide a dubious tax break that allows corporations to write off expenses far in excess of the cost they report to investors. Amazon, Netflix, Salesforce.com and a number of other companies used this tax break to write off millions. Tax credits and subsidies also provided hundreds of millions in write-offs for corporations.

“These tax loopholes allow many profitable corporations to avoid paying a single dime in taxes, but it should also be noted that many other profitable corporations are also using these special breaks to pay far less than the 21 percent statutory federal income tax rate,” Gardner said.

The 2017 tax law dropped the statutory federal tax rate from 35 percent to 21 percent. Lawmakers in favor of the law claimed that lowering the federal tax rate would make U.S. corporations more competitive globally, and they also claimed the tax cuts would spur innovation and pay for themselves. But prior to the tax law, many profitable corporations already avoided the statutory federal tax rate, and after the tax law, the biggest innovation is record-breaking stock buybacks, which have benefited wealthy investors.

A 2017 ITEP study examined eight years (2008 to 2015) of corporate financial filings and found that the average effective corporate tax rate was 21.4 percent, and 100 corporations managed to avoid all federal taxes in at least one year of the study. The 2017 tax law failed to close loopholes that enabled this rampant tax avoidance, and the consequences, which many economists predicted, are becoming evident. The Treasury Department last month reported that corporate tax collections in 2018 declined 31 percent from the previous year. This is the first year on record that corporate tax collections have fallen so precipitously during a period of economic expansion.

“We cannot pretend that corporate tax avoidance has no cost,” Gardner said. “Corporations zeroing out their tax bills or paying single-digit federal tax rates mean a substantial loss in federal revenue. Calls to cut critical programs and services in the wake of these corporate tax cuts are absolutely connected.”
 
Feb 2006
15,207
3,642
California
They can pay taxes like all other U.S. companies do!

There are several major ways that corporations avoid paying taxes, or manage to earn tax subsidies. One way is through finding ways to shift U.S. profits to foreign subsidiaries in countries with lower tax rates, a practice known as offshore tax sheltering. Another way is through the use of accelerated depreciation.Jun 25, 2019

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Dec 2018
5,573
1,474
New England
I get it - - no one who writes U.S. tax law is shrewd enough to outsmart the attorney's and financial wizards who work for MNCs. There is no alternative to their brilliant accounting schemes or their campaign contributions to members of Congress and Presidential candidates! Don't these K-Street multinational corporate attorneys write our corporate tax laws anyway?

No, it’s not the lobbying. It’s the global nature of the economy. National borders just don’t mean what they did, and your tax-first instincts are out of step with the times.
 
Dec 2018
5,573
1,474
New England
So, if they aren't paying anything here what are you suggesting. What is going to magically make them move here and bestow those benefits on the US?
A better (or no worse) tax deal than they can get elsewhere.

When you shop for an expensive item, what’s your plan?
 
May 2018
8,234
6,231
none
OOOHHH is it about stock?


The complete list is at https://itep.org/notadime.

An in-depth analysis of Fortune 500 companies’ financial filings finds that at least 60 of the nation’s biggest corporations didn’t pay a dime in federal income taxes in 2018 on a collective $79 billion in profits, the Institute on Taxation and Economic Policy said today.

If these companies paid the statutory 21 percent federal tax rate, they would owe $16.4 billion in federal income taxes. Instead, they collectively received $4.3 billion in rebates. The analysis, Corporate Tax Avoidance Remains Rampant under New Tax Law, examines 2018 corporate financial filings that have been released to date. It provides an initial, comprehensive look at how corporate tax cuts under the 2017 Tax Cuts and Jobs Act affected the tax-paying habits of corporations.

“For years, corporations have manipulated the system to avoid paying taxes, and it’s clear that the 2017 tax law did nothing to change this,” said Matthew Gardner, a senior fellow at ITEP and lead author of the report.

The tax-avoiding corporations are some of the most profitable, recognizable companies in the world, and they represent a variety of industries, including technology, energy and gas, financial services, aviation, pharmaceutical and manufacturing. Earlier this year, ITEP reported Netflix and Amazon paid no federal taxes. Other companies on this list include Chevron, Delta Airlines, Eli Lilly, General Motors, Gannett, Goodyear Tire and Rubber, Halliburton, IBM, Jetblue Airways, Principal Financial, Salesforce.com, US Steel, and Whirlpool. The complete list is at https://itep.org/notadime.

These companies avoided taxes by employing a variety of legal tax breaks. Accelerated depreciation allows companies to write off the cost of their investments much faster than these investments wear out. This break accounted for hundreds of millions in tax write-offs. Chevron alone, for example, reported $290 million in accelerated depreciation, and Halliburton reported $320 million.

Stock options provide a dubious tax break that allows corporations to write off expenses far in excess of the cost they report to investors. Amazon, Netflix, Salesforce.com and a number of other companies used this tax break to write off millions. Tax credits and subsidies also provided hundreds of millions in write-offs for corporations.

“These tax loopholes allow many profitable corporations to avoid paying a single dime in taxes, but it should also be noted that many other profitable corporations are also using these special breaks to pay far less than the 21 percent statutory federal income tax rate,” Gardner said.

The 2017 tax law dropped the statutory federal tax rate from 35 percent to 21 percent. Lawmakers in favor of the law claimed that lowering the federal tax rate would make U.S. corporations more competitive globally, and they also claimed the tax cuts would spur innovation and pay for themselves. But prior to the tax law, many profitable corporations already avoided the statutory federal tax rate, and after the tax law, the biggest innovation is record-breaking stock buybacks, which have benefited wealthy investors.

A 2017 ITEP study examined eight years (2008 to 2015) of corporate financial filings and found that the average effective corporate tax rate was 21.4 percent, and 100 corporations managed to avoid all federal taxes in at least one year of the study. The 2017 tax law failed to close loopholes that enabled this rampant tax avoidance, and the consequences, which many economists predicted, are becoming evident. The Treasury Department last month reported that corporate tax collections in 2018 declined 31 percent from the previous year. This is the first year on record that corporate tax collections have fallen so precipitously during a period of economic expansion.

“We cannot pretend that corporate tax avoidance has no cost,” Gardner said. “Corporations zeroing out their tax bills or paying single-digit federal tax rates mean a substantial loss in federal revenue. Calls to cut critical programs and services in the wake of these corporate tax cuts are absolutely connected.”
But wait, I thought our corporate taxes were too much and chasing companies away? ;)
 
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Dec 2018
3,031
2,112
Indiana
No, it’s not the lobbying. It’s the global nature of the economy. National borders just don’t mean what they did, and your tax-first instincts are out of step with the times.
Quit playing the innocent lamb. When it comes to corporations, it's all about lobbying, power, influence and money.

Governments create corporate charters and governments have the power to fully regulate corporations through domestic legislation as well as international agreements. Your gilded age/laissez-faire and there-is-no-alternative mentality isn't politically sustainable in a world of mixed economies like those of Western Europe.

Majority of Americans Dissatisfied With Corporate Influence

Study: Most Americans want to kill ‘Citizens United’ with constitutional amendment

 
Last edited:
Dec 2015
19,636
19,648
Arizona
Quit playing the innocent lamb. When it comes to corporations, it's all about lobbying, power, influence and money.

Governments create corporate charters and governments have the power to fully regulate corporations through domestic legislation as well as international agreements. Your gilded age/laissez-faire and there-is-no-alternative mentality isn't politically sustainable in a world of mixed economies like those of Western Europe.

Majority of Americans Dissatisfied With Corporate Influence

Study: Most Americans want to kill ‘Citizens United’ with constitutional amendment

Nat likes to argue----just for argument's sake. LoL
 
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Dec 2018
5,573
1,474
New England
Quit playing the innocent lamb. When it comes to corporations, it's all about lobbying, power, influence and money.
You're not understanding me. I'm not saying corporations don't lobby. I'm saying that they do is immaterial to this issue. Try as you might, you cannot tax money earned outside of the US. Multi-nationals will find a way to have their money earned in favorable tax jurisdictions, and there isn't a damned thing you, Bernie, or LIz can do about it.