Two of the finest whines Republicans have with their cheese are that corporate taxes are too high and that Obama has raised corporate taxes. The more Republicans whine about these things, the more uninformed people believe them. However, these are Republican politicians and pundits, so whenever there are whining, they are also doing something else. They are lying.
In recent decades, corporate tax revenue has plunged, falling from about 6 percent of gross domestic product in the 1950′s to less than 2 percent today, due to a proliferation of corporate tax breaks and the use of offshore tax havens. According to the Congressional Budget Office, in fact, corporate tax receipts as a share of corporate profits have hit their lowest point in 40 years:
Corporate tax receipts as a share of profits are at their lowest level in at least 40 years.
Total corporate federal taxes paid fell to 12.1% of profits earned from activities within the U.S. in fiscal 2011, which ended Sept. 30, according to the Congressional Budget Office. That’s the lowest level since at least 1972. And well below the 25.6% companies paid on average from 1987 to 2008.
Even the 25.6 percent share of profits that went to corporate taxes over the last quarter century comes in below the top statutory corporate tax rate of 35 percent. Meanwhile, corporate profits are currently at a 60 year high, rebounding back to above where they were before the Great Recession hit… [emphasis original]
Inserted from <Think Progress>
No the next time you hear Republicans lie about this subject, you will be armed with the truth about their lies.
21 Responses to “You Say Corporate Taxes Are Too High?”
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The CEOs and boards of directors of most tax-dodging corporations should be jailed for tax evasion and for depriving their workers of the right to live freely without economic fear.
No, I don’t agree. They would only end up at one of those “Country Club” prisons, at taxpayer expense, Then they’d get out, with their money still safe, and continue where they left off. Better to strip them of ALL their assets, ban them from ever working at a high income job again, put them to work in a minimum wage job, and let them rent a one bedroom apartment in the housing projects. Ooops!!! There goes the neighborhood!!!
I’m with Irene on this one. Or we could put them on a big ass ship and shoot at it until it sinks. I think the Navy may need some practice – they’ve been left out of the last 2 wars.
Welcome Irene. 🙂
Either way works for me, if their assets are stripped before they go to prison.
I think catching them telling the truth would be more noteworthy ; A lie repeated often becomes truth in the ears of the hearer–old propaganda technique– perfected by the Nazi’s– takes effort remaining informed–
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“However, these are Republican politicians and pundits, so whenever there are whining, they are also doing something else. They are lying.”
I have to agree with Rixar, because he’s quoting me. 😉
The really sad thing is I think they actually believe their own lies.
AAARRRRGGGGGHHHH – they’re my ex!!!!!!!!
LOL! 🙂
Patty, the rank and file believe their lies, but the politicians know they are lying.
Let’s not talk about the extortion they get from states to keep their businesses in their state.
Good point, Lisa!
Nameless, I’m not surprised. Thanks!
There are people who want the corporate tax rate to be zero. However, they never answer the question about corporations paying for the services the get, like roads, police and fire services, a legal system, etc. That is why they should pay taxes.
And those people are Republicans. You’re right!
“Total corporate federal taxes paid fell to 12.1% of profits earned from activities within the U.S. in fiscal 2011, which ended Sept. 30, according to the Congressional Budget Office. That’s the lowest level since at least 1972. And well below the 25.6% companies paid on average from 1987 to 2008.
Even the 25.6 percent share of profits that went to corporate taxes over the last quarter century comes in below the top statutory corporate tax rate of 35 percent. Meanwhile, corporate profits are currently at a 60 year high, rebounding back to above where they were before the Great Recession hit …”
The Republican/Teabagger robberbarons would have us believe that the current corporate tax rates are too high and are preventing the “job creators” from creating jobs to further help the economy. To that, I say BULLSHIT!! The unemployment rate in 2010 was 9.6%, 1982 – 9.7%, 1932 during the depression 23.6% ranging down to 14.6% in 1940. After that there was a substantial decline in part due to the WWII war effort and post war developments. Rates ranged from 1.2% in 1942 to most years between 4 and 7%.
http://www.infoplease.com/ipa/A0104719.html
The maximum corporate tax rate in 2010 was 35%, 1975-78 – 48%, 1979-83 – 46%, 1984-86 – 46%, 1987 – 40%, 1988-92 – 34%, 1993-2002 – 35%. Of course this does not account for deductions, loopholes etc that the average citizen cannot use which means that some companies like GE actually pay no corporate income tax, and indeed get refunds back.
http://www.irs.gov/pub/irs-soi/02corate.pdf
It appears to me that even when corporate tax rates were higher, there was a lower unemployment rate. Would someone explain to me how the Republican/Teabaggers came up with their idea that corporate tax rates need to come down in order to allow corporations, which are not people as popular Republican/Teabagger fairy tales would have us believe, to create more jobs. I don’t think anyone can, albeit that this is no simple topic to discuss. If it were, the Republican/Teabaggers might even, I emphasise MIGHT, be able to comprehend it.
I also found these interesting little tweets:
Well doesn’t that just put a twist in the knickers of the Republican/Teabaggers!
As you said TC a while ago, “Teabuggery most foul!”
Thanks Lynn. Excellent research.
ok, now i’m as liberal as they get and heavily involved in the corporate power/speech constitutional amendment effort, but i’m honestly of mixed mind on this issue. while it’s true that corporations end up paying less in taxes in the usa, it is, as everyone here has pointed out, because of loopholes and sweetheart deals, and that is likely due, at least in part, to the fact that our basic corporate tax rate is, in fact, higher than that of most other first world nations. i know it’s a pipe dream (but it shouldn’t be!) but what if we could start from scratch, get rid of all the funny business and, at the same time, lower the basic rate? i would think that should be attractive to the corporations, at least the honest ones, and would be a strong argument to keep their tax system clear and simple. what’s really going on, of course, is the corporate world trying to prey on an uninformed public by pointing out the true fact: a higher basic corporate tax rate, without being willing to discuss the loopholes, breaks, and offshore deals at the same time. if they want fairness on one side, they have to ‘fess up on the other.
Welcome Suzanne! 🙂
We’re talking about apples and oranges here. When you say they are too high, you are referring to the nominal rate, and when I say they are too low, I’m referring to the effective rate. If corporations were made to pay tax on all their income with no subsidies, loopholes, or sweetheart deals, I would not object to lowering the nominal rate.