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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (622760)8/4/2011 11:16:29 AM
From: i-node  Read Replies (1) of 1579772
 
I share your doubt that they paid that much in normal corporate income tax to the US federal government, but it might be accurate, if it includes when they where slammed with a "windfall profits tax" on top of ordinary corporate income taxes, and it includes taxes paid to foreign and state governments.

The WPT was a huge confiscation of oil company profits, with a 70% rate that sometimes generated 40B/year for the federal government. And it was part of the income tax paid.

I don't think they would have paid that much to the US government -- as their overall tax rate runs in the mid-to-high 40s typically.

However, as I pointed out in my previous post, there is simply not a sensible way to tax these companies on worldwide income without allowing a credit for foreign taxes paid. If you say, "We'll only tax you on your US income", it opens the door to much more difficult problems.

Al's other arguments about "loopholes", are too vague to make sense of. That isn't to say such loopholes don't exist, but the hyperbole over the topic that is prevalent just doesn't allow for a sensible discussion of it. You can't reasonably talk about a complicated subject in vague terms, which is what so many are trying to do.

If you examine the congressional committee reports, I think you'll find that most of the so-called loopholes that involve significant amounts of money were put there with pretty good reason.
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