Truth About Corporate Taxes
April 2, 2012
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This should come as no surprise: the Republican corporatists have been greatly exaggerating the effective tax rate paid by U.S. companies. The Congressional Budget Office reports that U.S. corporations paid on average just 12.1% in income taxes, not even half of the nominal 35% rate they complain about so vociferously and among the lowest rates in the world. All last week the media bombarded us with stories of the U.S. having the highest corporate tax rate after Japan lowered theirs. But with all those loopholes and deductions, companies pay a fraction of what you and I pay. And many companies, like Big Oil, get those ridiculous subsidies for simply running their business, effectively taking money from working class people and channeling it into CEO bonuses.
So let’s review: the federal deficit is in the tank, corporations and the super-rich are paying about 15% or less in income taxes, middle-class folks are paying about 35%. And the Republican Party thinks it’s somehow fair to cut taxes again for companies and the rich and increase taxes on everybody else, especially the very poor. If corporations are people as the Supreme Court has declared, then they should pay taxes like people and go to jail when they commit crimes like the banks and mortgage companies did leading to the Great Recession.