Last week I wrote about the effective tax rates of the top 400 earners in our country. Today I read a column about a study from Price Waterhouse which was commissioned by and for the “Business Roundtable.” The Business Roundtable consists of about 200 CEO’s from some the largest corporations in America.
This Price-Waterhouse study would lead one to believe that tax rates for corporations in the United States are the highest in the world. While our statutory corporate tax rate is 35%, few, if any corporations really pay that amount because of the many tax loopholes and “tax expenditures” within our tax code. Remember GE, who was recently given a $3.2 billion tax rebate and paid nada, nothing, zilch in corporate income tax!
Here’s the story as reported by the Business Roundtable.
Now read the story that debunks most of the myths the Business Roundtable will use to lead Americans to believe about how badly they are treated. These corporations who have to pay sooooo much in taxes that they must take their headquarters to other countries and move our jobs overseas, as well.
One very telling quote from the NY Times’ story by Floyd Norris is:
In the 1960s, corporate taxes amounted to about 22 percent of overall tax receipts, and averaged 3.9 percent of gross domestic product. In the most recent decade, the figures are about 12 percent of total taxes and 2.2 percent of G.D.P.
In other words, the corporate tax burden in roughly half what it was.
Be watching ladies and gentleman, because you can bet the Republicans will start quoting this Business Roundtable study to defend their constant call for tax breaks for the rich and corporate America. When they do, be prepared to correct those who will be gullible enough to believe the Republican rhetoric!