Most Companies In US Avoid Federal Income Taxes
WASHINGTON — The Government Accountability Office is set to release a report that says most U.S. corporations pay no federal income taxes.
And most foreign companies that do business in the U.S. aren’t paying corporate taxes.
The study says about two-thirds of American corporations paid zero income taxes to Uncle Sam between 1998 and 2005. An even higher percentage of foreign corporations avoided federal corporate taxes. At the same time, says the GAO, the firms had trillions of dollars in sales.
The study was requested by Democratic Senators Carl Levin of Michigan and Byron Dorgan of North Dakota. Dorgan says, quote, “It’s shameful that so many corporations make big profits and pay nothing to support our country.”
The report doesn’t name names and the congressional agency didn’t investigate why corporations aren’t paying corporate or income taxes. But the GAO says it could be because of operating losses and tax credits.