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U.S. Companies Pay Just One-Third Of The Legal Tax Rate: GAO Study | Activist News

U.S. Companies Pay Just One-Third Of The Legal Tax Rate: GAO Study

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Huffington Post
July 1, 2013
By

Big, profitable U.S. companies paid an average federal tax rate of less than 13 percent in 2010, according to a new study — or about a third of the statutory rate many of those same companies are lobbying hard to cut.

Profitable companies with more than $10 million in assets paid an average rate of 12.6 percent of their global profits in 2010, the latest data available, according to a new study by the Government Accountability Office, a nonpartisan congressional watchdog. That compares to the statutory corporate tax rate of 35 percent.

“When some U.S. corporations use unjustifiable loopholes and offshore gimmicks to avoid paying Uncle Sam, their tax burden is shifted onto hardworking American families and small business,” Sen. Carl Levin (D-Mich.), who commissioned the study, said in a statement, according to The Hill. “Today’s GAO report quantifies just how much of the corporate tax burden has been shifted onto other taxpayers: America’s large, profitable corporations are now paying a lower tax rate than our teachers and firefighters.”

Even when foreign, state and local taxes were added, the average corporate tax rate rose to just 17 percent, according to the GAO. And when unprofitable companies were added to the mix, the average tax rate still rose to only 22 percent of profits.

The study, which the GAO conducted at the request of Sens. Levin and Tom Coburn (R-Okla.), comes at a time when U.S. companies are complaining that their tax rate is among the highest in the world and should be cut to help them stay competitive.

Their heavy lobbying has impressed President Barack Obama, who has said the corporate tax rate should be cut to 28 percent. But it has not convinced most Americans, who oppose lowering taxes for corporations, according to a new survey conducted by a corporate lobbying group called RATE, short for Reforming America’s Taxes Equitably.

Full Article Here – http://www.huffingtonpost.com/2013/07/01/companies-tax-rate_n_3530448.html

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