55 Major Corporations Paid $0 In 2020 Federal Taxes

[gdgyva]

of those 55 companies, how many LOST money in 2019 and had a tax loss carry forward?

i realize very few of you are accountants, but companies pay taxes on earnings

When years like 2019 happen, and MOST companies LOSE money, it reduces the earning sometimes for years to come

Just the way the tax code works

 

[Logophile]

To rely on corporate taxes to keep the economy afloat is like riding a wave. Sooner or later, the wave hits the beach and off you go. An across the board federal sales tax is the solution for a number of reasons, including the fact that the tax code is so absurdly complicated that very few companies, never mind individuals, can figure out what they owe without accountants and sometimes tax attorneys. However, I would supplement a federal sales tax with a foreign labor tax, which would give corporations an even bigger incentive to bring production home. Corporations will be more inclined to pay steeper wages at home if they aren't paying a federal income tax, that is, when they have to pay it, and if foreign labor is just as expensive. Thanks!!

 

[bongsaway]

Joe Biden promised billionaires to keep it that way. That's when they all declared Biden will be the Democratic nominee and threw BILLIONS in monetary and in-kind contributions his way. At the same time they had their MSM, newspapers and Internet propaganda outlets they own trash Elizabeth Warren as TOO RADICAL!!! and put a cone of silence around Bernie Sanders using 24/7 coverage of covid-19 - making them hundreds of billions and ultimately trillions of dollars - allowing only time to announce Joe Biden will be the nominee.

Can you show us in writing where biden promised any such thing to the billionaires?

 

[bongsaway]

of those 55 companies, how many LOST money in 2019 and had a tax loss carry forward?

i realize very few of you are accountants, but companies pay taxes on earnings

When years like 2019 happen, and MOST companies LOSE money, it reduces the earning sometimes for years to come

Just the way the tax code works

Amazon announced a five billion dollar profit and paid zero income tax. They must have had a really bad year if they only made five billion in profit?

 

[ttwtt78640]

To rely on corporate taxes to keep the economy afloat is like riding a wave. Sooner or later, the wave hits the beach and off you go. An across the board federal sales tax is the solution for a number of reasons, including the fact that the tax code is so absurdly complicated that very few companies, never mind individuals, can figure out what they owe without accountants and sometimes tax attorneys. However, I would supplement a federal sales tax with a foreign labor tax, which would give corporations an even bigger incentive to bring production home. Corporations will be more inclined to pay steeper wages at home if they aren't paying a federal income tax, that is, when they have to pay it, and if foreign labor is just as expensive. Thanks!!

A sales tax is highly regressive since those with lower incomes spend a higher percentage of their meager incomes on taxable consumer goods.

 

[Eriech]

I await all the conservatives on here to claim this is a good thing.

Heaven forbid normal people try and pay less in tax but for billionaires and mega companies it's fine and just shows how smart they are and how much better then everyone else they are.

The corporate tax rate should be 0.

 

[CaughtInThe]

collectively earned more than $40 billion in profits last year

 

[Kushinator]

Regardless of what happened after the Trump tax cuts, we do know that reinvestment of profits (along with a host of other things) is generally seen as more palatable to the same folks, who, in order to incentivize it, write tax favorability for doing so into the law, who are also the same people who then complain when companies do what they wanted them to do, with a result that they pay less in taxes.

That's the rub... it didn't get reinvested at the magnitude that justified tax cuts. I too share the belief that corporations can be taxed more efficiently, but that doesn't change the fact that tax cuts are not a defacto path to investment and economic growth.

You asked a question intended to shift to a different topic. I responded in kind, though more blatantly, to be obvious.

If our current tax policy didn't lead to sustainable results, it's foolishness to continue moving forward in this manner. A change of course is necessary.

 

[cpwill]

What’s your point? Isn’t that the only right wing argument there is, great, they should reinvest it in their company?

No. The free market argument is that they should do whatever they want to with it, within the law. The conservative argument is that they should also bind themselves within propriety.

 

[SheWolf]

No. The free market argument is that they should do whatever they want to with it, within the law. The conservative argument is that they should also bind themselves within propriety.

Is the conservative argument also that multi billion dollar companies should not pay any taxes because it will trickle down?

 

[cpwill]

You’re just engaging in word salad and whataboutism. I want to know if you think this is what the GOP should be fighting for, more multi billion dollar companies paying no income tax. Just be straight up honest about it.

No. Whataboutism is an old soviet propaganda tactic where they would try to change the subject from one of their abuses to someone else's, taking advantage of that other person's moral code. China recently gave us an example when they responded to our disapproval of their committing genocide against the Uighurs with but what about black lives matter.

I am pointing out that, when companies pay no taxes on profits, it's often because they did what we claimed we wanted them to do, which is why we wrote those incentives into the tax code in the first place.

 

[cpwill]

Is the conservative argument also that multi billion dollar companies should not pay any taxes because it will trickle down?

Trickle Down is not at economic theory that conservatives adhere to. It is an (inaccurate) slur depiction instead.

Personally, if we could manage it, I'd prefer we get rid of corporate taxes all together, make capital gains part of regular income, and capture the gains there.

 

[cpwill]

That's the rub... it didn't get reinvested at the magnitude that justified tax cuts. I too share the belief that corporations can be taxed more efficiently, but that doesn't change the fact that tax cuts are not a defacto path to investment and economic growth.

If our current tax policy didn't lead to sustainable results, it's foolishness to continue moving forward in this manner. A change of course is necessary.

I can certainly concur that our system has a lot of room for improvement

 

[SheWolf]

That's the rub... it didn't get reinvested at the magnitude that justified tax cuts. I too share the belief that corporations can be taxed more efficiently, but that doesn't change the fact that tax cuts are not a defacto path to investment and economic growth.



If our current tax policy didn't lead to sustainable results, it's foolishness to continue moving forward in this manner. A change of course is necessary.

They used the cash to manage stock prices which I believe inflated the market. These increased stock prices are from more cash on hand due to tax policy, but not real economic growth. The CEOs and executives were paid out essentially. I believe the market is probably inflated because of this and a bubble will pop at some point. As usual, the CEOs and board are fully protected and will parachute out nicely. Maybe even get a nice corporate bailout paid by the real taxpayers.

 

[SheWolf]

Trickle Down is not at economic theory that conservatives adhere to. It is an (inaccurate) slur depiction instead.

Personally, if we could manage it, I'd prefer we get rid of corporate taxes all together, make capital gains part of regular income, and capture the gains there.

So the simple answer is yes, you’re fine with these companies not paying any taxes. Btw, Regan and traditional Republicans also want extremely low to zero capital gains taxes, so who are you kidding?

 

[Kushinator]

They used the cash to manage stock prices which I believe inflated the market.

Sure. Between 2009 and 2018, 465 companies listed on the S&P 500 purchased about $4.3 trillion in their own shares. When a company buys back equity, it doesn't translate into economic growth... it's not investment in the sense of production.

These increased stock prices are from more cash on hand due to tax policy, but not real economic growth. The CEOs and executives were paid out essentially. I believe the market is probably inflated because of this and a bubble will pop at some point. As usual, the CEOs and board are fully protected and will parachute out nicely. Maybe even get a nice corporate bailout paid by the real taxpayers.

Somewhat. IMO, monetary policy has more to do with stock prices well in excess of their traditional multiples. Stock buybacks are just a way to return profit to shareholders without assuming a tax liability in the process.

 

[Da Mole]

Gives ya that warm and fuzzy feeling doesn't it?


55 Major Corporations Paid $0 In 2020 Federal Taxes | The Daily Caller
The Fortune 500 corporations, including Nike, Salesforce, Dish Network and FedEx, were able to leverage tax breaks in the Tax Cuts and Jobs Act (TCJA) of 2017, which lowered the corporate tax rate to 21%, and the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, according to the report.

While the 55 companies collectively earned more than $40 billion in profits last year, they paid no federal taxes, the report found. They would have paid $8.5 billion at the current corporate tax rate of 21%.

And who's fault is that. Did these companies break any IRS laws or did they just take advantage of the intended loopholes provided by low life corrupt politicians? Does your accountant also protect you by using the loopholes your entitled too?

 

[Logophile]

A sales tax is highly regressive since those with lower incomes spend a higher percentage of their meager incomes on taxable consumer goods.

I believe it to be a fallacy. It is not regressive. High income people buy expensive items. People's spending is generally commensurate with their income level. The wealthier the person, the more expensive car he or she will drive, which will garner more tax upon its purchase. The same is true of haute couture clothes, of organic foods, of high end restaurants, of first class tickets, and the list goes on. A federal sales tax would solve so many problems. And bear in mind, the poor would still have social programs like food stamps and section 8 housing to help them. It's even possible to give them a sales tax exemption. It would be easy enough to do, certainly easier than trying to navigate through convoluted tax laws that in reality, make the entire system unfair, generally dysfunctional, and frankly, unconstitutional in the purist sense. Thanks!!

 

[Kushinator]

So the simple answer is yes, you’re fine with these companies not paying any taxes. Btw, Regan and traditional Republicans also want extremely low to zero capital gains taxes, so who are you kidding?

I mean, we don't necessarily have to tax corporations. We choose to do so. IMO, it would be more efficient to tax individuals in a truly progressive fashion. We can almost certainly tax stock buy-backs as well, given there is some risk of deadweight loss.

 

[Kushinator]

I believe it to be a fallacy.

That's because you're ignorant of very basic economics.

I'd ask you to review the savings function, but in the end that's just a pointless request. You're not interested in learning anything about the topics, and more concerned with parroting talking points.

It is not regressive. High income people buy expensive items.

Here you exemplify ignorance of the highest order. If a person who earns $50k/year has a savings rate of 3%, is taxed at their consumption an effective rate of 10% ($4700), their effective tax rate is 9.4%.

However, if a person who earns $500k/year has a savings rate of 50%, is taxed at their consumption an effective rate of 10% ($25000), their effective tax rate is 5%.

Now... are you prepared to address my statement?

 

[ttwtt78640]

I believe it to be a fallacy. It is not regressive. High income people buy expensive items. People's spending is generally commensurate to their income level. The wealthier the person, the more expensive car he or she will drive, which will garner more tax upon its purchase. The same is true of haute couture clothes, of organic foods, of high end restaurants, of first class tickets, and the list goes on. A federal sales tax would solve so many problems. And bear in mind, the poor would still have social programs like food stamps and section 8 housing to help them. It's even possible to give them a sales tax exemption. It would be easy enough to do, certainly easier than trying to navigate through convoluted tax laws that in reality, make the entire system unfair, generally dysfunctional, and frankly, unconstitutional in the purist sense. Thanks!!

That is simply not so which is why the “fair tax” proposal included an income based “prebate” to help reduce the regressive impact of a national sales tax.

 

[aociswundumho]

Gives ya that warm and fuzzy feeling doesn't it?

Yea, it does. Corporate taxes are a case of double taxation. They are stupid, and they make the world poorer, and they are pushed by stupid people who want nothing more than to funnel as much money as possible into government coffers.

Double Taxation of Corporate Income in the United States and the OECD

Biden’s proposal to increase the corporate income tax rate and to tax long-term capital gains and qualified dividends at ordinary income tax rates would increase the top integrated tax rate above pre-TCJA levels, making it the highest in the OECD and undercutting American economic competitiveness.

taxfoundation.org

 

[Logophile]

That is simply not so which is why the “fair tax” proposal included an income based “probate” to help reduce the regressive impact of a national sales tax.

It's impossible to say that it is "simply not so" if it has never been tried on a federal level. Regardless, I am on board with a national sales tax aka the "fair tax," albeit the fair tax is limited to retail sales. Thanks!!

 

[cpwill]

So the simple answer is yes, you’re fine with these companies not paying any taxes. Btw, Regan and traditional Republicans also want extremely low to zero capital gains taxes, so who are you kidding?

Well, as I said, in this case, we would be exchanging taxing the same profits to the point at which the owners collected them; raising capital gains tax rates in order to lower chorister tax rates.

 

[gdgyva]

The corporate tax rate should be 0.

For chapter C type corps, i agree

Let their employees pay the taxes as they earn income....

Seems like most people here would disagree though.....

I would LOVE to see a simplified tax code....the IRS basically eliminated, and zero tax on on companies that arent LLC or pass throughs

One page tax return.....No accountants, no tax advisers, no need

All income x rate (based on top line) - taxes paid (withheld) = money owed, or to be refunded

And the rates would go from 3% at the lowest brackets (yes i believe EVERYONE should have skin in the game) to 50% at the top

No deductions....No credits....no anything.....single, married, zero kids or 12 you pay the same based on top line

We could reduce the number of federal employees by hundreds of thousands (x avg 45k per annum)

All of those tax places like H&R and Intuit for turbotax would go out of business in no time (and we would ALL be better off)