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Corporations Lowering Their Own Taxes

February 2, 2011

For all the talk of corporate tax reform to lower the rate in the U.S., many companies have long been taking matters into their own hands, paying taxes at rates far lower than the statutory level of 35 percent.

The New York Times featured an illuminating report on how companies like cruise ship operator Carnival can pay an effective rate of only 1.1 percent. It’s hard to get your corporate tax rate much lower than that. Boeing paid only about 4.5 percent and Southwest Airlines only 6.3 percent.

If tax reformers expect corporations to go along with the elimination of their favored tax loopholes just so there isn’t a 35 percent statutory maximum in place, then they haven’t heard from the lobbyists yet.

Comments (1)
The great game, loopholes and cash. The working stiff, and those who have to take credit cards pay the way for all.

and the complacent, stupid public laps it up. No hope in sight.
Posted by | Thursday, February 03 2011 at 12:42PM ET
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