Corporate Taxation

Why are we talking about corporate taxes?

Corporate taxes are a stark example of the inherent injustice of Capitalism and the war that the rich are waging against the middle class and everyone else.  In 1961, corporate income taxes were over 1/3 of federal income tax revenue; today they are half that share.  It is the income taxes paid by individuals and small businesses that have made up for the declining share of taxes paid by corporations. 

How important are corporate taxes for the Federal government?

Corporate income taxes only make up 7% of Federal government tax revenue, while personal income taxes account for 44% and Social Security and Medicare 40%.

Have corporate taxes always been so small?

No. In the 1950s and most of the 1960s the top Federal corporate tax rate was 50%. Now it is nominally 35%.  During the earlier years, corporate taxes were more than 20% of federal tax revenue.

35% is still a substantial rate. Are our corporations not making money? Are our corporations in trouble?

Not exactly. Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a study by the Government Accountability Office issued by Congress in 2008. This was despite the fact that they were doing very well in those years. Collectively, they reported trillions of dollars in sales. A March 10th 2011 report from the Federal Reserve said that American corporations are sitting on a pile of $1.9 trillion in cash which they are unwilling to spend.

What corporations didn’t pay much in taxes?

Bernie Sanders has given many examples:

  • Exxon Mobil made $19 billion in profits in 2009.  Exxon not only paid no federal income taxes, it actually received a $156 million rebate from the IRS, according to its SEC filings.
  • Bank of America received a $1.9 billion tax refund from the IRS last year, although it made $4.4 billion in profits and received a bailout from the Federal Reserve and the Treasury Department of nearly $1 trillion.
  • Over the past five years, while General Electric made $26 billion in profits in the United States, it received a $4.1 billion refund from the IRS.
  • Chevron received a $19 million refund from the IRS last year after it made $10 billion in profits in 2009.
  • Boeing, which received a $30 billion contract from the Pentagon to build 179 airborne tankers, got a $124 million refund from the IRS last year.
  • Valero Energy, the 25th largest company in America with $68 billion in sales last year received a $157 million tax refund check from the IRS and, over the past three years, it received a $134 million tax break from the oil and gas manufacturing tax deduction.
  • Goldman Sachs in 2008 only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion bailout from the Federal Reserve and U.S. Treasury Department.
  • Citigroup last year made more than $4 billion in profits but paid no federal income taxes. It received a $2.5 trillion bailout from the Federal Reserve and U.S. Treasury.
  • ConocoPhillips, the fifth largest oil company in the United States, made $16 billion in profits from 2007 through 2009, but received $451 million in tax breaks through the oil and gas manufacturing deduction.
  • Over the past five years, Carnival Cruise Lines made more than $11 billion in profits, but its federal income tax rate during those years was just 1.1 percent.

Shouldn’t there be laws against this sort of thing?

Bernie Sanders has called for closing corporate tax loopholes and eliminating tax breaks for oil and gas companies. He also introduced legislation to impose a 5.4 percent surtax on millionaires that would yield up to $50 billion a year.

Starting a Local Chapter from Scratch (9pm Eastern)

October 04, 2016 · 5 rsvps
Webinar, RSVP required for sign in information

So you are now a member of DSA, but there is no local chapter where you live. You are thinking of starting a local chapter, but you're not quite sure how to do it.

In Starting a Local Chapter from Scratch you will learn:

  • how other locals got started in recent years
  • how to find out who is already a member
  • the importance of a comrade
  • how to recruit new members
  • the importance of a mentor
  • how to become a recognized organizing committee
  • how to become a chartered local
  • what works best to bring new people in.

Join us for our latest organizing training for democratic socialist activists: DSA’s (Virtual) Little Red Schoolhouse.

Instructor:

  • Steve Max, DSA Vice Chair and one of the founders of the legendary community organizing school, The Midwest Academy

Training Details:

  1. Workshops are free for any DSA member in good standing.
  2. You need a computer with good internet access.
  3. Your computer must have preferably headphones or else speakers; you can speak thru a mic or use chat to "speak".
  4. If you have questions, contact Theresa Alt talt@igc.org 607-280-7649.
  5. If you have very technical questions, contact Tony Schmitt schmittaj@gmail.com 608-355-6568.
  6. You can participate in every webinar or just attend once in a while.
  7. Workshops will generally be on weekends or evenings.
  8. Participation requires that you register at least 45 hours in advance -- by midnight Sunday for Tuesday's webinar.

NOTE: This training is scheduled for 9:00pm Eastern Time (8pm Central, 7pm Mountain, 6pm Pacific, 5pm Alaska, 3 pm Hawaii).

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DSA New Member Orientation Call

October 19, 2016 · 12 rsvps
DSA New Member Orientation

You've joined DSA - Great. Now register for this New Member Orientation call and find out more about our politics and our vision.  And, most importantly, how you can become involved.  8 PM ET; 7 PM CT; 6 PM MT; 5 PM PT.

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