Newt Gingrich said Friday that General Electrics aggressive legal and accounting strategy was a clever and rational response to the nation's high tax rates.
General Electric hasn't paid corporate income taxes for years and during the Reagan administration GE was filing a 24,000 page tax form that IRS did not have the staff to audit.
GE is the largest corporation in the US. Its present tax tactic is for its subsidiaries file 7,000 corporate tax forms.
GE earned a tax credit of $3.2 billion dollars for 2010. Talk about corporate welfare!
Gingrich is an advocate of supply side economics and wants to restore the Bush tax cuts for billionaires and millionaires and also eliminate the estate tax state tax which is toothless to begin with
The estates of approximately 50,000 millionaires were exempted form the estate in a compromise withn the Boehener congress.
The Estate Tax was established by Theodore Roosevelt in 1915.
Gingrich also wants to reduce the corporate tax to 12.5 per cent which is identical to Ireland. The US corporate tax rate needs to be reduced but the exemptions also need to be eliminated.
According to the NY Times, two out of every three United States corporations paid no federal income taxes from 1998 through 2005, according to a report released by the Government Accountability Office, the investigative arm of Congress.
Corporate revenues represented only 7.4 percent of all federal tax receipts in 2003. With the exception of 1983, this represents the lowest level on record (these data go back to 1934).
Obama plans to cut the corporate tax rate to 26 per cent, but also to eliminate exemptions. This should provide some more tax relief to the middle class.
Tax revenues are a zero sum game. If the federal government can't collect enough to fund it programs, it must increase taxes or defund programs.Otherwise the deficit and national debt balloon.
source: http://dealbook.nytimes.com/2008/08/13/study-tallies-corporations-not-paying-income-tax/. and
http://www.cbpp.org/cms/index.cfm?fa=view&id=1311
Subscribe to the Rightardia feed: http://feeds.feedburner.com/blogspot/UFPYA Netcraft rank: 5598 http://toolbar.netcraft.com/site_report?url=http://rightardia.blogspot.com
Rightardia by Rightard Whitey of Rightardia is licensed under a Creative Commons Attribution 3.0 Unported License.
Permissions beyond the scope of this license may be available at rightardia@gmail.com.
No comments:
Post a Comment