HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Corporation That Paid Not...

Sat Jul 21, 2012, 02:44 AM

Corporation That Paid Nothing In Taxes For Four Years Tells Congress It Pays Too Much In Taxes



Over a four years period from 2008 to 2011, Corning Inc. was one of 26 companies that managed to avoid paying any American income taxes, even though it earned nearly $3 billion during that time. In fact, according to Citizens For Tax Justice, the company received a $4 million refund from 2008 to 2010. That didn’t stop Susan Ford, a senior executive at the company, from telling the House Ways and Means Committee this week that America’s high corporate tax rate was putting her company at a disadvantage:

American manufacturers are at a distinct disadvantage to competitors headquartered in other countries. Specifically, foreign manufacturers uniformly face a lower corporate tax rate than U.S. manufacturers, and virtually all operate under territorial systems which encourage investment both abroad and at home.


Ford told the committee that Corning paid an effective tax rate of 36 percent in 2011, but as CTJ notes, she is counting taxes on profits earned overseas that haven’t yet been paid and won’t be unless the company decides to bring the money back to the United States. Corning’s actual tax rate in 2011, according to CTJ’s analysis, was actually negative 0.2 percent.

The territorial system Ford testified in favor of would actually encourage the offshoring of profits earned by American companies, thereby reducing the amount they pay in taxes even more. And rather than helping remove a disadvantage that prevents companies from creating jobs, an economic analysis of such a tax system found that it could actually cost the United States as many as 800,000 jobs.

-snip-

http://thinkprogress.org/economy/2012/07/20/558931/corporation-that-paid-nothing-in-taxes-for-four-years-tells-congress-it-pays-too-much-in-taxes/



56 replies, 9357 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 56 replies Author Time Post
Reply Corporation That Paid Nothing In Taxes For Four Years Tells Congress It Pays Too Much In Taxes (Original post)
Tx4obama Jul 2012 OP
Kalidurga Jul 2012 #1
BlueToTheBone Jul 2012 #7
zbdent Jul 2012 #20
Doremus Jul 2012 #39
BillyJack Jul 2012 #42
avebury Jul 2012 #55
TheFarseer Jul 2012 #44
CrispyQ Jul 2012 #26
ErikJ Jul 2012 #41
HiPointDem Jul 2012 #2
cstanleytech Jul 2012 #3
surrealAmerican Jul 2012 #8
elleng Jul 2012 #28
limpyhobbler Jul 2012 #4
aint_no_life_nowhere Jul 2012 #5
bluedigger Jul 2012 #23
LuvNewcastle Jul 2012 #6
Zalatix Jul 2012 #15
Fantastic Anarchist Jul 2012 #29
freshwest Jul 2012 #38
slampoet Jul 2012 #52
AzDar Jul 2012 #9
valerief Jul 2012 #10
Canuckistanian Jul 2012 #11
valerief Jul 2012 #13
raouldukelives Jul 2012 #17
woo me with science Jul 2012 #53
marias23 Jul 2012 #12
beac Jul 2012 #14
woo me with science Jul 2012 #16
bulloney Jul 2012 #18
LiberalFighter Jul 2012 #19
BumRushDaShow Jul 2012 #21
LiberalFighter Jul 2012 #22
SunSeeker Jul 2012 #24
radhika Jul 2012 #25
CrispyQ Jul 2012 #27
Snarkoleptic Jul 2012 #30
Initech Jul 2012 #31
aquamarina Jul 2012 #32
lonestarnot Jul 2012 #45
LiberalFighter Jul 2012 #33
Scurrilous Jul 2012 #34
mahatmakanejeeves Jul 2012 #35
blkmusclmachine Jul 2012 #36
blkmusclmachine Jul 2012 #37
Kennah Jul 2012 #40
midnight Jul 2012 #43
Iggy Jul 2012 #46
Iggy Jul 2012 #47
woo me with science Jul 2012 #48
avaistheone1 Jul 2012 #49
valerief Jul 2012 #50
piperpibroch Jul 2012 #51
rks306 Jul 2012 #54
Hubert Flottz Jul 2012 #56

Response to Tx4obama (Original post)

Sat Jul 21, 2012, 02:51 AM

1. I can't wrap my head around this...

shouldn't you have to be paying some taxes to testify about how taxes are harming your company?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Kalidurga (Reply #1)

Sat Jul 21, 2012, 07:33 AM

7. Only if you live in the world of normal.

otherwise, this is perfectly sane.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Kalidurga (Reply #1)

Sat Jul 21, 2012, 10:31 AM

20. AND receiving a refund???

wtf was refunded????

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zbdent (Reply #20)

Sat Jul 21, 2012, 07:09 PM

39. Getting a refund when no taxes were paid = Corporate Welfare nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Doremus (Reply #39)

Sun Jul 22, 2012, 12:09 AM

42. +1000

The Corporate Welfare Queens want MORE!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Doremus (Reply #39)

Mon Jul 23, 2012, 07:44 AM

55. Totally Agree! nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zbdent (Reply #20)

Sun Jul 22, 2012, 08:14 AM

44. corps that show a loss

can go back 3 or 5 years (I forget which) and get a refund from what they paid in those years. I forget the exact rules.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Kalidurga (Reply #1)

Sat Jul 21, 2012, 12:06 PM

26. Getting a $4 mil refund is not enough.



And I know too many Americans who will agree with her because after all,

1) Corporations create jobs;
2) If you tax them they will just raise the price of their products & services.

No shit. I hear those two all the time. Like we have a plethora of jobs & prices are stable.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Kalidurga (Reply #1)

Sat Jul 21, 2012, 10:48 PM

41. HAHA-dont be naive

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 02:52 AM

2. kr. more lies from shameless lying liars

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 03:44 AM

3. Isnt that called perjury? nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to cstanleytech (Reply #3)

Sat Jul 21, 2012, 08:12 AM

8. It sure sounds like it to me.

She knowingly gave false information in her statement to Congress. Arrest that woman!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to cstanleytech (Reply #3)

Sat Jul 21, 2012, 12:34 PM

28. No, its called 'accounting.'

NO (sarcasm)
And 'tax accountants' fees are tax-deductible!
System encourages this, so its 'legal.' System should be changed.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 04:10 AM

4. well that takes some nerve. nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 04:19 AM

5. She was of course challenged by the entire Congressional committee

and forced to see her error and admit it. No? No?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to aint_no_life_nowhere (Reply #5)

Sat Jul 21, 2012, 11:05 AM

23. Well, they nodded their heads sagely and harrumphed.

Does that count?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 04:25 AM

6. Ford and others like her will continue to complain

about taxes until workers begin paying for the privilege to work for their companies. Unfortunately, I think the odds of that happening are about 50/50.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to LuvNewcastle (Reply #6)

Sat Jul 21, 2012, 10:06 AM

15. They won't even stop complaining then.

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to LuvNewcastle (Reply #6)

Sat Jul 21, 2012, 12:39 PM

29. The teabaggers demand it!!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Fantastic Anarchist (Reply #29)

Sat Jul 21, 2012, 05:21 PM

38. +1

Reply to this post

Back to top Alert abuse Link here Permalink


Response to LuvNewcastle (Reply #6)

Sun Jul 22, 2012, 03:55 PM

52. That's what internships are. I still get offered them after 20 years in my field.

It is now common to pay a college for the privilege of working at a business.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 08:16 AM

9. ...

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 09:03 AM

10. These people are the real villains of America. And Congress are their agents. nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to valerief (Reply #10)

Sat Jul 21, 2012, 09:05 AM

11. Agents?

More like co-conspirators.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Canuckistanian (Reply #11)

Sat Jul 21, 2012, 09:34 AM

13. Congress writes the laws to make the crimes against humanity legal/possible. They're agents who get

renumerated well.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to valerief (Reply #13)

Sat Jul 21, 2012, 10:23 AM

17. Yep, as are all the investors.

Well that is, the knowledgeable ones. Placing personal wealth above humanity, cash over climate change. Only ever strengthening the underpinnings of the current system. Making corporate rule and extreme weather events that bring misery to millions that much more of a reality with every dollar.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to valerief (Reply #10)

Sun Jul 22, 2012, 04:33 PM

53. Thank you. nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 09:06 AM

12. Where is Wikileaks when we need them

I bet Mittens paid no taxes some years. I hate to invade anyone's privacy, but when you run for president you give that up, especially wher money is concerned. Repubs - don't you care that he destroyed much of his records as governor (why is that legal) and now is stonewalling on taxes. Why is he hiding so much?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 09:57 AM

14. More logic from Mitt-Romney's 1% world:

Actual people shouldn't get "free stuff" but corporate "people" deserve all the free stuff they can cram into overseas accounts.

A NEGATIVE tax rate? Isn't that what the GOP has been bitching about poor people paying???

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 10:17 AM

16. DU Rec

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 10:27 AM

18. It's the same as people bitching that Obama raised their taxes when they were reduced.

This country is so intellectually lazy that they allow bloviating, drug-addled, whore mongering airbags on the radio to do their thinking for them.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 10:37 AM

21. K&R

Keep pounding this over and over. Corporations have obfuscated that their so-called "pay too many taxes" is never the reality when the returns are exposed.

Their short-sightedness by going with short-term spite will ultimately lead to their self-destruction, because they have systematically shorted the producers of their products who they seem to forget would also be the consumers of their products.

And thus greed results in products that consumers can no longer afford. And they are doing this world-wide.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 10:42 AM

22. A bit difficult to have an effective tax rate of 36 percent when they don't pay any taxes.

The question that should really be asked is "How much of their net revenue in the USA is taxed?"

On the corporate tax bit I think it is screwed up the way it is set. They go up and down on the rates. It appears the smaller businesses get screwed the worse on this.

15% -- 0 to $50k
25% -- 50k to $75k
34% -- 75k to $100k
39% -- 100k to $335k
34% -- 335k to $10 million
35% -- 10m to $15 million
38% -- 15m to $18,333,333
35% -- over $18,333,333

Reply to this post

Back to top Alert abuse Link here Permalink


Response to LiberalFighter (Reply #22)

Sat Jul 21, 2012, 11:15 AM

24. Wow. Couple that with lower effective tax rates as the incomes go up...

As Chris Hayes said on Lawrence O'Donnell, "We no longer have the ability in this country to really tax people at the top."

http://www.democraticunderground.com/1002978955

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 11:55 AM

25. I just posted a snark on the Corning, Inc Facebook Page - join me! n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 12:11 PM

27. Bloodsuckers.

The corpos are going to suck everything dry. The economy, the planet, our humanity. All for the profit of a few.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 01:05 PM

30. She's whining because Corning didn't get a larger negative tax rate (refund).

Cuz, ya know, she's one of the chosen ones...the job creators.
LOLz

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 01:12 PM

31. The absolute worst kind of grifter.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 01:15 PM

32. And she probably said it with a perfectly straight face.

Corporate executives are SO out of touch it's mind blowing sometimes to listen to them.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to aquamarina (Reply #32)

Sun Jul 22, 2012, 11:38 AM

45. I stopped listening to their shit long ago. Why would anyone want to waste their time listening to

lies? In fact, if one listens to lies repetitively, one may start to believe them.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 01:48 PM

33. Here is a good response from CTJ Citizens for Tax Justice

It’s unclear how Ms. Ford comes up with a 36 percent rate, but clearly one thing she’s doing is counting Corning’s “deferred” U.S. taxes (taxes not yet paid) as well as “current” taxes (U.S. taxes actually paid in 2011). Of course, those “deferred” taxes may eventually be paid. If and when they are paid, they will be included in Corning’s “current” taxes in the year(s) they are paid.

But current taxes are what Corning actually pays each year, and Corning has amassed an impressive record of paying nothing, or less than nothing, in current U.S. taxes. CTJ and ITEP’s November 2011 corporate tax avoidance report found that between 2008 and 2010, Corning didn’t pay a dime in federal corporate income taxes, actually receiving a $4 million refund to add to its $1.9 billion in U.S. profits during this period. And a more recent CTJ report found that in 2011, Corning earned almost $1 billion in U.S. pretax income, and once again didn’t pay a dime in federal income tax. These data paint a dramatically different picture from the “36 percent” claim made by Corning before Congress today.

In fact, over the 2008-2010 period, Corning paid a higher effective corporate income tax rate to foreign governments than it paid to the US government. (Which wasn’t hard to do, since it paid nothing to the U.S. government.) CTJ’s November 2011 report shows that over the 2008-2010 period, Corning paid -0.2 percent (negative 0.2 percent) of its US profits in US corporate income taxes, but paid 8.6 percent (positive 8.6 percent) of its foreign profits in foreign corporate income taxes.

Full Response]

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 01:53 PM

34. K & R

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 04:09 PM

35. It's certainly not reflected in the stock price.

I wish I could "retroactively" not have bought that one.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 04:21 PM

36. A bunch of empty suits in Congress,

This is how you drown a functioning democracy in a bathtub, my friends. Pedal to the metal. Hop aboard DC's Bipartisan Express. Next stop, Hooverville.


Do you know about Operation Northwoods?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to blkmusclmachine (Reply #36)

Sat Jul 21, 2012, 04:23 PM

37. That's Change You Can Believe In!!!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sat Jul 21, 2012, 10:01 PM

40. Pardon the pun, but that's rich.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 01:40 AM

43. Corporations need to be given the tab for the chaos created by their greed and ungrateful free ride

for way too long....

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 12:49 PM

46. These crybabies are total Hypocrites/Liars

 

right now, numerous highly rated S&P companies are sitting on well over $1 Trillion in liquid cash.

it's just sitting there doing nothing, not being invested in America. I can almost guarantee you some
of these companies are the ones whining and moaning about "high taxes".

WTF??! why do they need more tax breaks when they are clearly not investing in the U.S.? GE creates _plenty_ of
jobs-- in other nations. should they get a tax break forever?

again, Congress = FAIL.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 01:01 PM

47. Uber Wealthy Hiding at Least $21 Trillion worldwide

 

Sweeeeeeet, eh?

A global super-rich elite had at least $21 trillion (£13tn) hidden in secret tax havens by the end of 2010, according to a major study.

The figure is equivalent to the size of the US and Japanese economies combined.

The Price of Offshore Revisited was written by James Henry, a former chief economist at the consultancy McKinsey, for by the Tax Justice Network.

Tax expert and UK government adviser John Whiting said he was sceptical that the amount hidden was so large.

Mr Whiting, director of the Office of Tax Simplification, said: "There clearly are some significant amounts hidden away, but if it really is that size what is being done with it all?"

Mr Henry said his $21tn is actually a conservative figure and the true scale could be $32tn. A trillion is 1,000 billion.

Mr Henry used data from the Bank of International Settlements, International Monetary Fund, World Bank, and national governments.

His study deals only with financial wealth deposited in bank and investment accounts, and not other assets such as property and yachts.

The report comes amid growing public and political concern about tax avoidance and evasion. Some authorities, including in Germany, have even paid for information on alleged tax evaders stolen from banks.


Just me or is there something very wrong here?

http://www.bbc.co.uk/news/business-18944097

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 02:22 PM

48. Kick

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 02:37 PM

49. Go figure.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 02:38 PM

50. K&R

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 02:52 PM

51. Makes sense. They paid too much in comparison to what they have to pay in the Caymans....ZERO.

It's all relative. When you're used to getting something for free, any amount would be too much.

Hoard hidden from taxman by global elite

• Study estimates staggering size of offshore economy
• Private banks help wealthiest to move cash into havens

http://www.guardian.co.uk/business/2012/jul/21/global-elite-tax-offshore-economy?INTCMP=SRCH

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Sun Jul 22, 2012, 08:52 PM

54. Taxes to high

44% of corporations don't pay any income tax. I know what GOP comeback is 47% of people do not pay tax. This would include soldiers. They don't do enough for this country. What does make better since tax people that make little or tax corporations that are making highest profits in history.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tx4obama (Original post)

Mon Jul 23, 2012, 08:57 AM

56. We need to drug test those fucking corporations on welfare!

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread