Reuters: Government Study says most corporations pay no U.S. income taxes

Study says most corporations pay no U.S. income taxes
Reuters

Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

More than half of foreign companies and about 42 percent of U.S. companies paid no U.S. income taxes for two or more years in that period, the report said.

During that time corporate sales in the United States totaled $2.5 trillion, according to Democratic Sens. Carl Levin of Michigan and Byron Dorgan of North Dakota, who requested the GAO study.

The report did not name any companies. The GAO said corporations escaped paying federal income taxes for a variety of reasons including operating losses, tax credits and an ability to use transactions within the company to shift income to low tax countries.

With the U.S. budget deficit this year running close to the record $413 billion that was set in 2004 and projected to hit a record $486 billion next year, lawmakers are looking to plug holes in the U.S. tax code and generate more revenues.

Dorgan in a statement called the report "a shocking indictment of the current tax system." Levin said it made clear that "too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States."

The study showed about 28 percent of large foreign corporations, those with more than $250 million in assets, doing business in the United States paid no federal income taxes in 2005 despite $372 billion in gross receipts, the senators said. About 25 percent of the largest U.S. companies paid no federal income taxes in 2005 despite $1.1 trillion in gross sales that year, they said.

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2007: Barack Obama promised to "walk on that picket line" if workers are denied the right to bargain

Time to step up Mr. President -- who do you serve?

“We Have a Fire in the House of Labor. We Are Here to Put it Out”: Wisconsin Firefighters and Police Officers Join Massive Protests Against Anti-Union

“We Have a Fire in the House of Labor. We Are Here to Put it Out”: Wisconsin Firefighters and Police Officers Join Massive Protests Against Anti-Union Bill
Democracy Now

In the largest rally yet, an estimated 80,000 people protested in Madison on Saturday against a "budget repair" bill that would strip public workers of their collective bargaining rights. The state’s Democratic Senators—who have fled the state to stall a vote on the bill—sent a letter to Gov. Scott Walker on Friday telling him labor would accept cuts to pensions and increased contributions to health and retirement plans if he would negotiate on collective bargaining. The cuts Walker has proposed in a sweeping budget bill would exclude public safety workers like police, state troopers and firefighters, but this does not mean they are in support of the legislation. To discuss this further, we are joined by Mahlon Mitchell, president of the Wisconsin Professional Firefighters Association. “An assault on one is an assault on all,” Mitchell says. “As firefighters and police officers, we do not sit idly by. We make things happen.”

To Watch/Listen/Read

AlterNet: Lawmakers Flee Wisconsin Capitol, State Police Pursue; Protests Swell to 30,000

Lawmakers Flee Wisconsin Capitol, State Police Pursue; Protests Swell to 30,000

As up to 30,000 protesters overwhelmed the state capitol building in Wisconsin today, Democratic Senators hit the road, reportedly with State Police officers in pursuit. The Dems split in order to deprive Republicans the necessary quorum for taking a vote on Gov. Scott Walker's bill to strip benefits and collective bargaining rights from state workers.

One state senator told the Milwaukee Journal Sentinel that he believed all had left the state (h/t Lila Shapiro, The Huffington Post). From the Journal Sentinel:

In a telephone interview, Senate Minority Leader Mark Miller (D-Monona) declined to give his location but acknowledged that at least one other Democrat was with him. He said that law enforcement would be able to compel him and his members to the Senate floor if they are located in Wisconsin.

"I can tell you this - we're not all in one place," Miller said. "This is a watershed moment unlike any that we have experienced in our political lifetimes. The people have shown that the government has gone too far . . .  We are prepared to do what is necessary to make sure that this bill gets the consideration it needs."

UPDATE: According to Newsradio 620 WTMJ, "Democratic Senator Jon Erpenbach confirmed that he and all of his Democratic colleagues boarded a bus and left the state."

Lest you actually believe (and I know you know better) that Gov. Walker's war on the public workers in his state is simply about, as he says, balancing Wisconsin's budget, please note that Walker is just one among many of Wisconsin's Koch-sponsored politicians, and the Koch brothers are hell-bent on destroying the labor movement once and for all.

During his election campaign, Walker received the maximum $15,000 contribution from Koch Industries, according to Think Progress, and support worth untold hundreds of thousands from the Koch-funded astroturf group, Americans For Prosperity. AlterNet recently reported the role of Republican National Committee Chairman Reince Priebus and Americans For Prosperity in a vote-caging scheme apparently designed to suppress the votes of African-Americans and college students in Milwaukee, and told you of the gaggle of Koch-sponsored politicians who individually graced the podium at last weekend's Conservative Political Action Conference (including several from Wisconsin: Rep. Paul Ryan and Sen. Ron Johnson). Rep. Michele Bachmann, also a Koch favorite from next-door Minnesota, kicked off the conference.

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