ArlJim78
03-25-2011, 11:14 AM
http://www.nytimes.com/2011/03/25/business/economy/25tax.html?pagewanted=1&_r=4
Okay so they made a $14 billion dollar profit last year, but was able to shelter much of it overseas, and through other favorable tax treament ended up paying no taxes in the US. Instead they rec'd a $3 billion dollar tax credit!
Over the years they have been hugely successful at lobbying for tax breaks and favoritism from congress which alllows them an advantage.
I'm not upset about compainies making huge profits, and I'm not a believer that corporate taxes are particularily constructive, but what bothers me is the cronyism. Those with the best lobbyists win. Those who show a willingness to support whatever political ideology is fashionable or who throw the most money to certain politicians districts get a waiver from the high taxes, while the others are just suckers.
Congress keeps the corporate tax rate high at 35% because it forces company lobbyists to come groveling to them, the offers roll in, the quid pro quo deals are made and its business as usual. While most people will rail against the corporation for this situation, I place the fault squarely with the politicians who pave the way for it. GE can't write the rules, or grant the waivers themselves, but if they make a sweet enough deal or support the right programs they sure as hell can get favorable treatment from government agencies.
If we must have a corporate tax, I would prefer equal treatment for all. One corporate tax rate that all must pay, no waivers. Maybe it would be only 12 or 15% so it would lower the barriers because right now a competitor who doesn't have the connections of GE or the army of lobbyist is s.o.l.
Okay so they made a $14 billion dollar profit last year, but was able to shelter much of it overseas, and through other favorable tax treament ended up paying no taxes in the US. Instead they rec'd a $3 billion dollar tax credit!
Over the years they have been hugely successful at lobbying for tax breaks and favoritism from congress which alllows them an advantage.
I'm not upset about compainies making huge profits, and I'm not a believer that corporate taxes are particularily constructive, but what bothers me is the cronyism. Those with the best lobbyists win. Those who show a willingness to support whatever political ideology is fashionable or who throw the most money to certain politicians districts get a waiver from the high taxes, while the others are just suckers.
Congress keeps the corporate tax rate high at 35% because it forces company lobbyists to come groveling to them, the offers roll in, the quid pro quo deals are made and its business as usual. While most people will rail against the corporation for this situation, I place the fault squarely with the politicians who pave the way for it. GE can't write the rules, or grant the waivers themselves, but if they make a sweet enough deal or support the right programs they sure as hell can get favorable treatment from government agencies.
If we must have a corporate tax, I would prefer equal treatment for all. One corporate tax rate that all must pay, no waivers. Maybe it would be only 12 or 15% so it would lower the barriers because right now a competitor who doesn't have the connections of GE or the army of lobbyist is s.o.l.