Tuesday, August 12, 2008

Corporate Income Taxes Not Paid Grossly Exaggerated

According to the Tax Foundation, the AP stories reported today on a GAO report on corporate income taxes have grossly exaggerated the number of “large corporations” who paid no corporate income taxes. The truth is that only .28% of “large” corporations (at least $250 million in assets or at least $50 million in receipts) paid no corporate income taxes. The bulk of US corporations are small companies, or “S” corporations, and pay income taxes only as regular income, not as “corporate income”. The AP stories over estimated the amount of non-corporate tax paying large corporations by 90 times.