Monday, July 28, 2014

High U.S. business taxes? Pants on fire!

FACT: American corporate taxes are low, and have been dropping for almost 65 years.

U.S. corporations used to pay about one-third of federal taxes—now they pay less than 10 per cent.

You’ve heard the spectacularly false blather about “high U.S. corporate tax rates”?  Of course you have. “The U.S. business tax rate at 35% is highest among developed nations, highest in the universe and beyond, a chokehold on American businesses….”

The thing is, almost no corporation in America actually pays 35% of its income in federal taxes, what with federal tax breaks, loopholes, subsidies and offshore profit havens. In fact, the average big American company pays less than 23% in federal taxes, and the average PROFITABLE big company pays only about 17% of its income in federal taxes.

Around 1950, says, American corporations were paying 32 per cent of all federal taxes.

Now, American corporations pay less than 10 per cent of all taxes collected by the federal government. Individual taxpayers like you and me, combined, pay more than 40 per cent of U.S. tax revenues when we file our federal tax returns, and that’s not counting our additional payroll tax deductions for Social Security and Medicare.

Currently, among the world’s developed nations that belong to the Organization for Economic Cooperation and Development (OECD), the United States ranks third from the bottom in corporate tax collections.

That stuff about high corporate tax rates is just a politically-motivated lie.

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