The GAO says two-thirds of US corporations didn’t pay federal income taxes for the seven years through 2005. Did these companies break the law or just profit from loopholes in the tax code? Outraged Senator Levin suggest the former, but we imagine it’s the latter.
New York Times: Two out of every three United States corporations paid no federal income taxes from 1998 through 2005, according to a report released Tuesday by the Government Accountability Office, the investigative arm of Congress.
The study, which is likely to add to a growing debate among politicians and policy experts over the contribution of businesses to Treasury coffers, did not identify the corporations or analyse why they had paid no taxes. It also did not say whether they had been operating properly within the tax code or illegally evading it.
The study covers 1.3 million corporations of all sizes, most of them small, with a collective $2.5 trillion in sales. It includes foreign corporations that do business in the United States.
But Senator Carl Levin of Michigan, who commissioned the study, is already convinced of what its results mean:
Senator Levin said in written remarks on Tuesday that “this report makes clear that too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States.”
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