Researched by Rob Hunter and Ryan Larkin
Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress. More than 38,000 foreign corporations doing business in the U.S. had no tax liability in 2005 and 1.2 million U.S. companies paid no income tax, the GAO said. Combined, the companies had $2.5 trillion in sales. About 25 percent of the U.S. corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts. Collectively, the companies reported trillions of dollars in sales, according to GAO’s estimate. “It’s shameful that so many corporations make big profits and pay nothing to support our country,” said Sen. Byron Dorgan, D-N.D.
“Most Companies In US Avoid Federal Income Taxes” GAO, Common Dreams, 8/12/08