(Original Post)
Wed Nov 9, 2011 4:55PM GMT
According to a recent report by Citizens for Tax Justice (CTJ), the 280 most profitable U.S. corporations sheltered half their profits from taxes between 2008 and 2010.
"These 280 corporations received a total of nearly $224 billion in tax subsidies," said Robert McIntyre, Director at Citizens for Tax Justice and the report's lead author. "This is wasted money that could have gone to protect Medicare, create jobs and cut the deficit."
30 companies average less than zero tax bills in the last three years, 78 had at least one no-tax year.
Financial services received the largest share of all federal tax subsidies over the last three years. More than half the tax subsidies for companies in the study went to four industries: financial services, utilities, telecommunications, and oil, gas & pipelines.
U.S. corporations with significant foreign profits paid tax rates to foreign countries that were almost a third higher than what they paid to the IRS on their domestic profits.
FACTS & FIGURES
The U.S. Congress and President Barack Obama approved an $858 billion tax deal in December 2010. Critics said the law would add to the budget deficit. The tax law extended tax rates for all income groups, including the wealthiest top 2 percent. Reuters
The U.S. debt deal reached in August did not include a tax increase on the rich due to the opposition of Republicans in Congress. Reuters
More than half of the total benefit from the tax cuts in 2010 alone will accrue solely to the richest 5 percent of Americans while the middle 20 percent of Americans will reap only 7 percent of the benefit. American Progress
Some economists say extending the tax cuts for the wealthy will cost about $80 billion by the end of 2012. American Progress
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