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Large Corporations Manipulate the System to Avoid Taxes


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    I recently read a study that said over 60 Fortune 500 companies avoided paying federal tax income entirely in 2018. All in all, the companies that didn't pay a cent in federal income tax had a collective $79 billion in profits for that year. The study claimed that if the companies had paid the mandatory 21 percent tax rate, they would have owed $16.4 billion in federal income taxes. That money could have gone quite far if it had been paid like it should have been.

    The companies doing this are some of the most profitable, largest, and most known companies in the world. They're obviously well aware of what they're doing. And with no one actually stepping up to force them to pay their part, the problem will continue to get worse while they get richer.

    How does the problem get resolved? The money that's not going to taxes looks to be slip up among bonuses and political contributions to continue doing what they've always done. Is it really simply all about money and donations to political figures? If that's the case, looks like that money will continue to go towards the super rich and not where it's supposed to go.

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    Part of the argument for this is if we actually charged some of these companies a real tax rate and didn't allow all kinds of deductions that they wouldn't stay. They would just pack up and move operations elsewhere. Which certainly can be true, depending on the product. Fortunately for the US, some companies can't do that and maintain US consumer business.

    So they should close tax loopholes for corporations. At least until its no longer possible for companies like Amazon to pay $0 in taxes. How is that even possible??

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    Milton Wrote:

    Part of the argument for this is if we actually charged some of these companies a real tax rate and didn't allow all kinds of deductions that they wouldn't stay. They would just pack up and move operations elsewhere. Which certainly can be true, depending on the product. Fortunately for the US, some companies can't do that and maintain US consumer business.

    So they should close tax loopholes for corporations. At least until its no longer possible for companies like Amazon to pay $0 in taxes. How is that even possible??

    The fact that companies like Amazon are paying zero for taxes is what gets me the most. I just can't understand how that slides with all the rules and regulations companies have to follow. A small company would never get away with that.