Why is about half of Congress so intent on preserving tax loopholes for corporations? Much has been made recently about how General Electric paid no taxes on $14 billion of profits, but Rupert Murdoch’s News Corp can do better than that. From a Slate story and a Reuters chart:
After digging through News Corp.’s financial disclosures, Johnston reports that based on the company’s $10.4 billion profits during that time period, the company would have been expected to pay $3.6 billion at the 35 percent corporate tax rate. But instead the company managed to collect $4.8 billion in income tax refunds, “all or nearly all from the U.S. government.”
Nearly $5 billion paid by us because the company is so good at using tax havens, such as the Cayman Island. News Corp ranks #3 in diverting profits off-shore. Of course it’s all legal, but why do we have laws allowing it? The solution from the GOP? Cut the corporate tax rate even further.