Many U.S. corporations pay little in federal income taxes: report
– Yahoo News
“By Alana Wise WASHINGTON (Reuters) – At least two-thirds of all active U.S. corporations paid nothing in federal income taxes during the 2006-12 period, despite an income-dependent statutory tax rate of 15 percent to 35 percent, the Government Accountability Office said in a recent report.
Among large, profitable entities, 19.5 percent paid nothing in federal income taxes in 2012, said the report, which came at the behest of Democratic presidential contender Bernie Sanders, whose campaign circulated the study.
The report from the nonpartisan federal auditing agency said profitable corporations were able to use tax deductions and incentives to lessen their federal tax burdens in a given year, sometimes bringing their amount paid to zero.
Profitable corporations, on average, from 2008 to 2012, paid just 14 percent of their earnings in federal income taxes.”
…Continue reading @ Yahoo News
What GAO Found:
“In each year from 2006 to 2012, at least two-thirds of all active corporations had no federal income tax liability. Larger corporations were more likely to owe tax. Among large corporations (generally those with at least $10 million in assets) less than half—42.3 percent—paid no federal income tax in 2012. Of those large corporations whose financial statements reported a profit, 19.5 percent paid no federal income tax that year. Reasons why even profitable corporations may have paid no federal tax in a given year include the use of tax deductions for losses carried forward from prior years and tax incentives, such as depreciation allowances that are more generous in the federal tax code than those allowed for financial accounting purposes. Corporations that did have a federal corporate income tax liability for tax year 2012 owed $267.5 billion.”
…from the Government Accoutability Office Report found here @ GAO.gov