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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (624814)	8/17/2011 1:33:48 PM
From: i-node	1 Recommendation Read Replies (1) \| Respond to of 1578758

Hilarious. Politifact determined the following: "Our research finds solid ground beneath her claim that some large U.S. companies don’t pay taxes. That’s why we rate her statement as True." Some people driving through town at below the speed limit don't get tickets, too. What a f*cking stupid assed post.

To: tejek who wrote (624814)	9/11/2011 11:48:42 AM
From: TimF	2 Recommendations Respond to of 1578758

"Between 1998 to 2005, GAO found that about 72 percent of large foreign controlled companies and 55 percent of large U.S. controlled companies reported zero tax liability for at least one year. Reported no next tax liability for at least one year in a 7 year period. So what? In many of those cases it could be because the company didn't record profits that year. Higher corporate tax rates are not going to increase pre-tax corporate profitability. An increase in tax rates will increase the percentage of corporations who don't pay any taxes as they will have more incentive to change their structure or activity to reduce tax liability, and to find, lobby for, and tax advantage of tax breaks, some of which would have been of questionable benefit with lower rates. Its not clear if the meaning is really that they paid no taxes, or just that they paid no taxes to the US government. If the later, reducing rates would also reduce the percentage that paid no taxes to the US government as lower rates would reduce the disincentive to recognize income in, or shift it to, the US, rather than in/to other countries. Also as pointed out later in that article - -- "The GAO report doesn’t say that businesses aren’t paying taxes they owe," Regalia’s statement said. "Rather, it says that some corporations did not have tax liabilities — in other words, they did not owe taxes. So how do corporations avoid having tax liabilities? They don’t make any profits. You can have many billions of dollars in revenue and still have R&D, labor-related and other expenses that are larger than your revenues — and therefore no ‘income’ to tax. "In sum, the idea that there is a large pool of corporations not paying taxes that they legally owe is just incorrect," Regalia concluded.