20 U.S. companies that paid 0% in taxes

[ivwshane]

Hint, profits after taxes often go towards R&D, and expansion which usually means more employees. Or it pays shareholders and bonuses which are also taxed.

What part of "net profit" do you not understand? Companies spend their gross profit money to lower their net profit, thereby lowering their tax rate. It's why at the end of the year businesses rush to spend money on new office equipment or other non product/service related things, to lower their net profit, which again lowers their tax rate.

 

[BoberFett]

HUUUUUURRRRRR!!!

You're almost as useless as Newell Steamer and dmcowen.

 

[ivwshane]

You're almost as useless as Newell Steamer and dmcowen.

Lol! And yet they are a step above you in quality of posts.

Don't be mad at me because you didn't take a basic economics class. Some quick "googling" can get you up to par

Then, maybe, you could actually add to a thread for once.

 

[Matt1970]

What part of "net profit" do you not understand? Companies spend their gross profit money to lower their net profit, thereby lowering their tax rate. It's why at the end of the year businesses rush to spend money on new office equipment or other non product/service related things, to lower their net profit, which again lowers their tax rate.

It's like arguing with bacteria, at least bacteria serves a purpose.

 

[ivwshane]

It's like arguing with bacteria, at least bacteria serves a purpose.

To keep people away from you?

 

[Matt1970]

To keep people away from you?

I am not surprised bacteria's purpose eludes you as well.

 

[ivwshane]

I am not surprised bacteria's purpose eludes you as well.

Yep! Now you know how I feel when talking to you about economics


Enjoy your bacteria!

 

[Exophase]

As libtards love to point out, those companies did pay a shit ton in taxes via social security and medicare in addition to state and federal unemployment insurance.

Outrage not found. False thread title is a LIE.

Uh, what? Companies don't pay social security and medicare tax, their employees do. And while unemployment insurance is technically an additional tax it's regressive and the vast, vast majority of employees are capped to the same paltry $42 a year (http://www.cbpp.org/cms/index.cfm?fa=view&id=1466) which barely registers as a drop in the bucket as far as employee overhead goes, much less a "shit ton of taxes."

 

[spidey07]

Uh, what? Companies don't pay social security and medicare tax, their employees do. And while unemployment insurance is technically an additional tax it's regressive and the vast, vast majority of employees are capped to the same paltry $42 a year (http://www.cbpp.org/cms/index.cfm?fa=view&id=1466) which barely registers as a drop in the bucket as far as employee overhead goes, much less a "shit ton of taxes."

What the fuck?!

This is prime example of why this fuck should not be allowed to vote.

Are you honestly saying an employer doesn't pay social secutiruty and Medicare tax per employee?

This is what we are dealing with. Total idiots. Make sure you vote.

I can't comprehend one that can post such bullshit. My head explodes.

Remember. These people can vote.

 

[Exophase]

Okay, the employer matches social security/medicare on behalf of the employee, you're right I didn't know that and was wrong in my post.

But let's look at some actual numbers. The contribution is 6.2% for social security, and it's capped at $117k for 2014. So the maximum per employee is about $7k a year. The average will be a lot less because of the many, many employees who make substantially less than $117k a year. Merck has 76,000 employees, so let's say they pay an average of $4k per employee in a year, or about $1k per quarter. That's $76k for the entire company.

Given the cap it's crazy to consider social security as proportional to profit for companies making hundreds of millions to billions per quarter.

Then there's medicare at 1.45% without a cap. I don't know what the total wages are for the employees, but I'm pretty confident that payroll isn't coming anywhere close to what profit is like for these companies, and that would be for 1.45% of the total profit, not 35%. I don't see how you can possibly compare this sort of withholdings with the tens to hundreds of millions per quarter these companies are supposed to be paying in corporate taxes.

 

[Michael]

Exophase - "Merck has 76,000 employees, so let's say they pay an average of $4k per employee in a year, or about $1k per quarter. That's $76k for the entire company." If you pay 1K per employee per quarter and there are 76K employees, is the tax $76K per quarter or $76M per quarter?

I'm also not sure if the employer portion is capped.

First you're wrong on what employers pay and then your math is way off?

Think a little before posting.

Michael (I am reasonably sure I have more experience at these sort of things than most if not all posters here. I also am getting annoyed at needing reading glasses these days ...)

 

[ivwshane]

Exophase - "Merck has 76,000 employees, so let's say they pay an average of $4k per employee in a year, or about $1k per quarter. That's $76k for the entire company." If you pay 1K per employee per quarter and there are 76K employees, is the tax $76K per quarter or $76M per quarter?

I'm also not sure if the employer portion is capped.

First you're wrong on what employers pay and then your math is way off?

Think a little before posting.

Michael (I am reasonably sure I have more experience at these sort of things than most if not all posters here. I also am getting annoyed at needing reading glasses these days ...)

For federal government charges a base amount around .6% of the first $7000 a year. The states however have their own rules. Typically businesses will pay more each year depending on how many claims were made the previous year.

 

[Exterous]

Just another thing blowing the Republitards complaints of taxes being too high as a crock of shit.

Given that the corporate tax rate is set higher than 0% this is not an example of the tax rate being or not being too high. Its an example of the absurdity of the tax code that includes numerous loopholes bought by companies who make massive campaign contributions to Democrats and Republicans and rules that favor large companies over medium\small ones

One of the tricks is you borrow from your overseas shell corps and then you write off the interest that you pay back your overseas shell corp as interest expense.

Not to mention keeping profits overseas instead of returning it to the US

Workers who expect less money and fewer rights, less environmental regulation, lower insurance and health care costs, cheaper energy, and maybe - just maybe, greedy corporate fucks who care only about their own short term profit from the company, and fuck all for the companies and employees long term health.

Yes - Walgreens was totally considering moving their headquarters to Switzerland for lower wages, fewer workers rights, less environmental regulation, cheaper energy etc. Its not like average wagers are higher there, workers get far more rights and benefits than here, energy is more expensive or anything

 

[Michael]

The biggest loophole is "accelerated depreciation" which is a bonus for investing in equipment that usually creates jobs.

Another big "loophole" is R&D tax credit. Promotes spending on R&D in the USA.

Sometimes I wonder if people really know what a loophole is ....

Michael

 

[Tombstone1881]

As libtards love to point out, those companies did pay a shit ton in taxes via social security and medicare in addition to state and federal unemployment insurance.

Outrage not found. False thread title is a LIE.

So a multinational corporation making record profits that pays no taxes to the federal government, but has to pay social security and Medicare in addition to state and federal unemployment insurance IS a taxpayer,

but a low income person who is below the income level to pay federal taxes, but still has to pay state and local taxes, sales taxes, fee's on everything they buy or use such as cell phones, gas taxes and toll road fees, is NOT a taxpayer.

How exactly does that work?

 

[Exterous]

The biggest loophole is "accelerated depreciation" which is a bonus for investing in equipment that usually creates jobs.

Another big "loophole" is R&D tax credit. Promotes spending on R&D in the USA.

Sometimes I wonder if people really know what a loophole is ....

Michael

Actually I think 'Deferral of overseas profits' is the biggest one given that estimates by various studies put that somewhere between $1.8 and $2.5 trillion dollars kept outside the US.

I would consider encouraging corporations to keep such profits overseas as an inadequacy in the tax law

 

[schai]

One of the tricks is you borrow from your overseas shell corps and then you write off the interest that you pay back your overseas shell corp as interest expense.

even though the interest payments are going back to your overseas shell corp in ireland.

Corporations have to prepare consolidated financial statement, where inter-companies transactions like loan, interest expense, sales, and payable will be eliminated.

 

[BoberFett]

The biggest loophole is "accelerated depreciation" which is a bonus for investing in equipment that usually creates jobs.

Another big "loophole" is R&D tax credit. Promotes spending on R&D in the USA.

Sometimes I wonder if people really know what a loophole is ....

Michael

It's them things those evil corperayshuns use to steal mah money!!!!

LOOPHOLES!!!

 

[Exophase]

Exophase - "Merck has 76,000 employees, so let's say they pay an average of $4k per employee in a year, or about $1k per quarter. That's $76k for the entire company." If you pay 1K per employee per quarter and there are 76K employees, is the tax $76K per quarter or $76M per quarter?

I'm also not sure if the employer portion is capped.

First you're wrong on what employers pay and then your math is way off?

Think a little before posting.

Michael (I am reasonably sure I have more experience at these sort of things than most if not all posters here. I also am getting annoyed at needing reading glasses these days ...)

You're right, that was way off It's still however small compared to 35% of profit (which is over $570m for that quarter). And yes, the employer portion of social security is capped to the same 6.2% as the employee contribution, that much I actually did verify:

"The OASDI tax rate for wages paid in 2014 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $117,000 would contribute $7,254.00 to the OASDI program in 2014, and his or her employer would contribute the same amount."

http://www.ssa.gov/oact/cola/cbb.html

According to spidey not knowing these things for sure means you shouldn't be voting either, I guess, or maybe it's okay so long as you know the employer contributes something.

Despite the awful quality of my last couple posts, there's still a basic point I want to stand by here - I don't think it's meaningful to lump in employee-related taxes with taxes on earnings. When you hire someone you know what you'll have to pay in terms of taxes, that's accounted along with a big pool of other overhead expenses. You can't express it as a percentage of profit and then say that they actually are paying > 0% earnings taxes.

 

[CLite]

Hint, profits after taxes often go towards R&D, and expansion which usually means more employees. Or it pays shareholders and bonuses which are also taxed.

bonuses to employees are most certainly not taxed.

Also R&D almost always gives tax credits. Also expansion involving capital expenditures can also be tax credits.

Really the only completely post-tax expenditure by a corporation is dividends to shareholders.

 

[Texashiker]

Hint, profits after taxes often go towards R&D,

How does that explain CEO pay being at an all time high?

 

[Tombstone1881]

It's them things those evil corperayshuns use to steal mah money!!!!

LOOPHOLES!!!

YOUR tax rates are higher to make up the difference from the money that is NOT received from the corporations which are enjoying record profit margins.

Maybe YOU don't mind personally subsidizing those corporations, but there are those among us who DO mind having to subsidize them.

 

[Capt Caveman]

I paid $30K in taxes last year on an income of around $100K. That's just direct taxes from filing, not including sales tax or any of the other incidental taxes the state/feds squeeze out of me.

You don't think I'm taxed enough?

You had no deductions? Sure.

 

[BoberFett]

You had no deductions? Sure.

Just the standard deduction.

Deductions are loopholes and should be eliminated, right?

 

[Texashiker]

Deductions are loopholes and should be eliminated, right?

Hello no.

Deductions encourage investment.

In the past 2 months I have invested several hundred dollars into a new chicken yard. 100% of that is tax deductible. The eggs that will come from that chicken yard will be sold and given away.

But, the government should not be subsidizing fortune 500 companies. If the CEO rakes in millions, why is that company getting a tax break?