Most folks would find it hard to believe, as our government in Washington fights to stay fiscally afloat, how GE got away with paying no corporate federal taxes in 2010. Actually GE was able to get a $3.2 billion rebate. But unfortunately, most Americans don’t realize how corporations like GE get away with this sort of thing on a regular and recurring basis. Folks hear lots from too many politicians who claim that companies like GE pay 35% in federal taxes and say that the companies should be allowed to pay at a lower rate.
The reality is that it’s a rare company that pays the current 35% corporate rate. In fact, from 2008 through 2011, it has been reported that 25 Fortune 500 companies paid no federal taxes during those years. Let’s take a look at ten huge corporations and see how they fared in recent years when it comes to profits, paying taxes to the federal government and receiving rebates:
• Exxon Mobil. In 2009, Exxon Mobile made $19 billion in profits. Not only did Exxon avoid paying any federal income taxes that year, according to its SEC filings, it actually received a $156 million rebate from the IRS..
• Bank of America. Last year, Bank of America received a $1.9 billion tax refund from the IRS, even though it made $4.4 billion in profits. Just a couple of years ago, the huge company received a bailout from the Federal Reserve and the Treasury Department of nearly $1 trillion.
• General Electric. Over the past five years, while General Electric made $26 billion in profits in the United States, it received a $4.1 billion refund from the IRS.
• Chevron. In 2009, Chevron received a $19 million refund from the IRS after it made $10 billion in profits.
• Boeing. Last year, Boeing, which received a $30 billion contract from the Pentagon to build 179 airborne tankers, was able to get a $124 million refund from the IRS.
• Valero Energy. Last year, Valero Energy, the 25th largest company in America with $68 billion in sales, last year received a $157 million tax refund check from the IRS and, over the past three years, it received a $134 million tax break from the oil and gas manufacturing tax deduction.
• Goldman Sachs. In 2008, Goldman Sachs paid only 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion bailout from the Federal Reserve and U.S. Treasury Department.
• Citigroup. Last year, Citigroup made more than $4 billion in profits but paid no federal income taxes, even though it received a $476.2 billion in cash and guarantees from the TARP, Federal Reserve and U.S. Treasury. This was more than any other bank.
• ConocoPhillips. ConocoPhillips, the fifth largest oil company in the United States, made $16 billion in profits from 2007 through 2009, but received $451 million in tax breaks through the oil and gas manufacturing deduction during those years.
• Carnival Cruise Lines. Over the past five years, Carnival Cruise Lines made more than $11 billion in profits, but its federal income tax rate during those years was just 1.1 percent.
I am convinced that working men and women, who not only work hard for their pay, but also pay their fair share of taxes, believe that huge corporations should also pay their taxes and not be given special treatment by the government. Unfortunately, very few folks in this country know how the giants in Corporate America receive special treatment when it comes to the U.S. Tax Code. It will take getting the truth out to the public on this issue if this sort of thing is ever to be changed by Congress. Presently, Corporate America gets its way in Congress and that overwhelming influence will have to be curtailed before we will see tax reform on the national level in this country.
Source: Washington Post
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