Posts Tagged ‘Corporate taxes’

The USA is a low-tax country

October 3, 2013
Click to enlarge

Click to enlarge.  “This year” in the captions is 2011.

I don’t advocate taxes for the sake of raising taxes or reducing the incomes of rich people.  But I do think that taxes should be high enough to cover the normal cost of operating the government, and I don’t think Americans should rule out a modest tax increase as a contribution to balancing the budget.

These charts were created by the Center for American Progress two years ago, but the situation they depict hasn’t changed since then.

The tax reductions proposed by President George W. Bush had an expiration date.  That is unusual, and was done for a reason.  Some people in Congress worried about the impact of cutting taxes in the midst of war, and voted for the tax reduction as an experiment, so see how it worked out.

Well, we know the result of the experiment.  It was one of the two main reasons, along with the economic recession, that the government is so much in the red now.   Returning to Clinton-era taxes, eliminating unnecessary government programs and growing the economic are not mutually exclusive.  We should do all three.

A look at taxes in perspective

December 11, 2012
Double click to enlarge

Double click to enlarge

If we return to Clinton-era tax rates, taxes will still be low by historic standards.

Keep in mind that the tax rates shown are only the top marginal rates, paid on income above a certain threshold.  Most people, including the very rich, are taxed at a lower overall rate.

Hat tip to The 21 Blog.

GE Filed 57,000-Page Tax Return, Paid No Taxes

November 18, 2011

General Electric, one of the largest corporations in America, filed a whopping 57,000-page federal tax return earlier this year but didn’t pay taxes on $14 billion in profits. The return, which was filed electronically, would have been 19 feet high if printed out and stacked.

Click on GE Paid No Taxes for the full article in the Weekly Standard.  [Hat tip to The Big Picture]

[11/19/11]  One thing that could be done about things like this is require public corporations to state their profits in the same way in their tax returns and in their reports to stockholders.

[11/22/11]  Click on G.E.’s Strategies Let It Avoid Taxes Altogether for a New York Times article explaining how General Electric organizes its business to avoid paying taxes.

U.S. corporate taxes generally have been going down.  The graph below shows corporate taxes as a fraction of corporate profits.

Click on Corporate Taxation in America for the source of the chart and comment by Kevin Drum of Mother Jones.