At least not according to Citizens for Tax Justice and the Institute on Taxation and Economic Policy who surveyed 280 multi-billion-dollar companies and found the effective tax rate averaged 18.5%, not the 35% statutory rate the TeaOP are so fond of quoting. Sorry, Paul. Wrong again.The worst offenders had significantly negative effective tax rates despite recording profits. The Economist:
While 71 companies paid over 30% of their profits in federal income tax, 30 enjoyed negative tax rates over the whole three year period. Pepco, an electricity company, had the lowest effective tax rate of -57.6%. Wells Fargo, a bank, received the biggest tax subsidy over the three years of almost $18 billion, and was one of 25 companies which took more than half of the total $223 billion subsidy claimed. In at least one of the three years, 78 firms paid no or negative tax rates, and legally-by writing off capital investments before they actually wear out (known as “accelerated depreciation”), making use of tax deductible stock options and industry-specific tax breaks, and offshore tax havens.
2 thoughts on “Corporate Tax Rates – Not So High, Mr. Ryan”
I called him on that a while back, http://bloggingblue.com/2011/07/08/is-he-lying-or-stupid/ but it never stops him. he has that line programmed in his little brain and never strays from it.
Yep, but we just gotta keep pushing. It’s a big rock-of-stupid we’ve gotta move.
Comments are closed.