The Corporate Tax Rate Is Zero, If No One Pays It

In 2018, deficit spending continues to be OK if helps rich folks and politically connected corporations, but a deadly sin if it helps working people.


Within a 2009 Rolling Stone article detailing how Goldman Sachs has and continues to strip mines the US economy, is this interesting tidbit:

According to Goldman's annual report, the low taxes are due in large part to changes in the bank's "geographic earnings mix." In other words, the bank moved its money around so that most of its earnings took place in foreign countries with low tax rates. Thanks to our completely fucked corporate tax system, companies like Goldman can ship their revenues offshore and defer taxes on those revenues indefinitely, even while they claim deductions upfront on that same untaxed income. This is why any corporation with an at least occasionally sober accountant can usually find a way to zero out its taxes. A GAO report, in fact, found that between 1998 and 2005, roughly two-thirds of all corporations operating in the U.S. paid no taxes at all.

Don't take The Stone's word for it: check the Government Accounting Office report for yourself. So, next time a GOP candidate tells you that US corporations labor under one of the highest corporate tax rates in the world, ask him/her if they're a liar or an idiot. There is no other answer.