Most U.S. Corporations Pay No Taxes

Corporate Greed

According to a study by the Governmental Accountability Office, 57 percent of U.S. corporations paid no federal income taxes for at least one year between 1998 and 2005. That same study revealed that 72 percent of all foreign corporations failed to do so. Furthermore, in 2005, 25 percent of the top U.S. companies paid no income tax while grossing over $1 trillion in sales!

The study mentioned several ways corporations are doing this, mainly by figuring out the loopholes in the tax system and using them to their advantage. This, of course, is not too surprising. We would add that the “business first” policies of the Democrats and Republicans also contributed greatly to the taxpayers’ subsidization of some of the world’s largest corporations.

But what are the greater implications of a little publicized study like this? Right now there is much talk about deficits. We’re broke, so we’re told. (It’s quite funny how stark individualists suddenly start using words like “we” and “us” when it comes to owing money!) Many states are facing huge deficits as well as the much-hyped national deficit. This is the context in which this study must be viewed. At a time when the Big Business politicians are telling teachers, social workers, firefighters, etc., to sacrifice, they are telling those who benefit the most from the structures of our society that business is to continue as usual. Moreover, this is after we already bailed them out of the crisis they caused.

Ultimately, this is just more evidence of the bankruptcy of capitalism. Far from being a “fair” system with a “level playing field” that gives you what you put in, it is a system of entrenched privilege.

But we are seeing in Wisconsin, as well as throughout the Arab world, a push back from everyday people against this undue privilege. We believe it is only a matter of time before the working class here in the U.S. decides it needs political representation.The Democrats will try their best, but in the long run, they will simply be unable to co-opt and neutralize the movements spurred by the failure of capitalism to give future generations a similar living standard as their parents. A new political party and a new political future is in the cards. We look forward to being part of the forefront of the fight!

 


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