60% of U.S. Companies paid $0 in income tax from 1996-2000

http://cnnmoney.printthis.clickability.com/pt/cpt?action=cpt&title=Many+Firms+Avoided+Taxes+Even+as+Profits+Soared+in+Boom+-+Apr.+6%2C+2004&expire=&urlID=9840569&fb=Y&url=http%3A%2F%2Fmoney.cnn.com%2F2004%2F04%2F06%2Fnews%2Feconomy%2Ftaxes_corporate.dj%2F&partnerID=2200

WASHINGTON - More than 60% of U.S. corporations didn't pay any federal taxes for 1996 through 2000, years when the economy boomed and corporate profits soared, Tuesday's Wall Street Journal reported, citing the investigative arm of Congress.

The disclosures from the General Accounting Office are certain to fuel the debate over corporate tax payments in the presidential campaign. Corporate tax receipts have shrunk markedly as a share of overall federal revenue in recent years, and were particularly depressed when the economy soured. By 2003, they had fallen to just 7.4% of overall federal receipts, the lowest rate since 1983, and the second-lowest rate since 1934, federal budget officials say.

The GAO analysis of Internal Revenue Service data comes as tax avoidance by both U.S. and foreign companies also is drawing increased scrutiny from the IRS and Congress. But more so than similar previous reports, the analysis suggests that dodging taxes, both legally and otherwise, has become deeply rooted in U.S. corporate culture. The analysis found that even more foreign-owned companies doing business in the U.S. -- about 70% of them -- reported that they didn't owe any U.S. federal taxes during the late 1990s.

The basic federal corporate-tax rate for big corporations is 35%. But the federal tax code also offers many credits and loopholes that allow many companies to pay far less than that.

breaks so they can hire folks. That's the absurdity, that average Americans have been duped for so long about this. And, wouldn't it make sense that all our tax burdens would go down, if the corporations paid their fair share. But, of course the CEO's stock options and salaries might have to take a hit and the Board Members perks and salries take an even bigger one, so it will never fly. And, it will never be reported except in the print media.

Clinton was in on it, too. I guess both sides go with corporate welfare.

the tax laws were on the books. Companies increasingly find legal ways to avoid taxes.

Clinton may have looked the other way. But more information is needed.

http://quote.bloomberg.com/apps/news?pid=10000103&refer=us&sid=ahNihIp8EPbk

Kerry Proposes Corporate Tax Cuts to Spur Job Growth (Update5)

March 26 (Bloomberg) -- Democratic presidential candidate John Kerry pledged to create 10 million jobs in the U.S. over four years by ending incentives for corporations to invest overseas and giving tax credits to those that hire in the U.S.

``It is unfair to call a recovery a recovery when it is jobless,'' Kerry said in an interview citing the 2.2 million U.S. jobs lost under President George W. Bush. ``What I have is a plan that actually creates jobs here in the United States.''

Ending tax breaks for companies that hire overseas would save $12 billion a year, according to Kerry. That money would be used to cut the corporate tax rate to 33.25 percent from 35 percent. Kerry said his proposal would encourage business to hire more workers in the U.S., which would help reverse the 2.2 million jobs lost since Bush took office in 2001.

tax "abatements" as a lure to an area to "bring in jobs", and then they fold up shortly before the abatement period is over and they are supposed to start paying local taxes?

On a related note, Ohio is concerned that there are more people leaving the state than moving in. I wonder if the fact that there are few jobs being created within a GOP controlled state? (State house, Federal house, state Senate, Federal Senate, Governor, . . .)