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Wednesday, November 24, 2010

Corporations: Let Them Pay Fees!

Corporations are getting smarter, not just about doing more business in low-tax countries, but in moving their more valuable assets there as well. That means setting up overseas subsidiaries, then transferring to them ownership of long-lived, often intangible but highly profitable assets, like patents and software. “
As a result, figures tax economist Martin Sullivan, companies are keeping some $28 billion a year out of the clutches of the U.S. Treasury by engaging in so-called transfer pricing arrangements,  (Source 3)
“With corporate tax receipts at 20-year low, the GAO takes a look through the books and finds 94% of all U.S. companies paid less than 5% -- and 61% paid nothing at all.” (Source 1)

“About 70% of foreign-owned companies doing business in the United States paid no federal tax in the late 1990s, the GAO said. The GAO report covered 2.1 million returns by U.S. companies and 69,000 foreign-owned companies.”(Source 1)

“In fact, in 2008, the Government Accountability Office found that two out of every three United States corporations paid no federal income taxes from 1998 through 2005.”  (Source 4)

Companies with a tax bill of zero
Source: General Accounting Office

Tax year
U.S. returns
1996
1,360,566 (60.3%)
1997
1,331,638 (60.9%)
1998
1,335,000 (61.0%)
1999
1,310,280 (61.2%)
2000
1,332,239 (63.0%)


2009  TAXES PAID  and GROSS SALES  (Source 2 and Source 3)

General Electric   ZERO dollars to the US  (10K  - tax liabilities is ALL to foreign governments)
General Electric Sales   $157 billion
_____________
ExxonMobil   $26 million to the US,  $15.1 billion in foreign taxes owed.
Exxon Sales:  $301 billion
_____________
Walmart  $4.9 billion to the US  , $1.2 billion international.
Walmart Sales:   $401 billion
_____________
AT&T     $6.2 billion to the US
AT&T Sales:   $123 billion
_____________
Bank of America – ZERO dollars to the US
Bank of America Sales:   $120 billion
_____________
Ford Motor Company    $69 million to the US
Ford Sales:   $118 billion
_____________
IBM  $34 million to the US             $35 million international
IBM Sales:   $96 billion
_____________
CitiGroup   ZERO tax dollars to the US
Sales:  $91.1 billion


New Revenue Stream


I live in a State where our stupid governor committed to a “No New Taxes” pledge when he came into office so I learned about a new way to raise money – it’s called “fees”.

For those Corporations that don't think they should pay their “fair share” of taxes – maybe we can recoup some of those lost taxes with “corporate fees’.
$        Want to use the corporate jet?  That will be an additional “corporate fee” for the air traffic controller and the runway usage, let’s see $10,000 per take-off is a good number.
$        Need fire coverage for your building?  That will be an additional “corporate fee” for use of the fire department.
$        Need police coverage for your building?  That will be an additional “corporate fee” for use of the police department.
$        Company car?  Oops, that’s an additional $4.00 “corporate fee” per gallon for gasoline.
$        Company credit card paying for that lunch?  Oh my, that will be an additional 22% “corporate usage fee”. (Just because we can)
$        Want water in your building?  Well, that will be an extra $100 “corporate fee” per flush.
$        How many company cars do you own?     Hmmmmmmm, that will be a $5,000 per car “corporate fee” for usage of the highways, city streets and for new curbs.
$        Oh, you have a cafeteria on-site?  Well that will be $100 “corporate fee” for each meal served to ensure safe food for your employees.
$        Bypassing the scanners at TSA?  That will cost you a "corporate fee" of $5,000 per passenger.

The possibilities are endless.
Let them pay fees.

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