Corporate Taxation And Economic Policy Essay

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When examining the Corporate Income Taxes In the 1990s released by the Institution of Taxation and Economic Policy, it shows a clear-cut abuse by cooperation in our tax system. This study was conducted to examine the deferral income taxes paid or not paid by 250 of the U.S.’s largest corporations from 1996 to 1998. This period boosted a strong gain in profits for these companies, pretax corporate profits rose by 23.5 percent over the three years examined. This study closely examines on how corporate income tax revenues didn’t keep pace or come close to matching the profit increase. Revenue only rose by 7.7 percent during this time period. In 1998 alone, a total of 94 corporations faced a net liability of less than half the full 35% corporate tax rate and the corporations (List these) Lyondell Chemical, Texaco, Chevron, CSX, Tosco, PepsiCo, Owens & Minor, Pfizer, JP Morgan, Saks, Goodyear, Ryder, Enron, Colgate-Palmolive, WorldCom, Eaton, Weyerhaeuser, General Motors, El Paso Energy, WestPoint Stevens, MedPartners, Phillips Petroleum, McKesson and Northrup Grumman all had net negative tax liabilities. If that fact isn’t startling, this fact brings a grimmer look at our tax code: “Forty-one of the 250 companies paid less than zero in federal income taxes in at least one year from 1996 to 1998. In the years they paid no income tax, these 41 companies reported a total of $25.8 billion in pretax U.S. profits. But rather than paying $9 billion in federal income taxes, as the
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