Is It Right That Some Major Corporations Pay NO Income Taxes?

iVillage Member
Registered: 11-13-2009
Is It Right That Some Major Corporations Pay NO Income Taxes?
4
Thu, 11-03-2011 - 11:07pm

 

iVillage Member
Registered: 03-03-2009

The tax code needs to be overhauled and loopholes need to be closed, although with lobbyists besieging elected representatives and too often actually writing legislation, those changes are likely to be slow in coming.......if they come at all.

Seems that more and more of us are frustrated by what we see as NOT "government of the people, by the people, for the people"; but "business as usual". I wonder what Abe Lincoln would have made of today's political

Jabberwocka

iVillage Member
Registered: 11-13-2009
<< Pepco Holdings, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent,...>>

I know little of the tax code, and can't understand this. How can a corporation, or anyone, have a negative tax rate?

 

iVillage Member
Registered: 03-03-2009
I'm guessing the Pepco negative rate is a function of one or a combination of deductions. From your link: "One big one is accelerated depreciation that lets them write off equipment faster than it actually wears out. Deductions on executive stock options help. So do tax breaks for research and development and for making products in the United States instead of overseas."

Jabberwocka

iVillage Member
Registered: 08-30-2002

What, you guys aren't buying that if we charge these companies taxes they won't create jobs? That's what I keep hearing. That if we charge them taxes, then they'll take all their marbles to a foreign country (oops, already do don't they) and not hire Americans. So, we are supposed to accept these tax inequities because of the threat of people losing jobs. You know.....PEOPLE WHO PAY TAXES!!!