A recent study on corporate tax payments has been making waves on the Internet and in Washington in the past week.

The study in question, from the Government Accountability Office, actually dealt with a comparison of the reported tax liabilities of foreign- and U.S.-controlled corporations between 1998 and 2005, but it also pointed out the surprisingly sparse contributions of both types of companies. The report found that two-thirds of both American companies and foreign companies doing business in the U.S. end up avoiding all income tax obligations to the federal government despite sales of $2.5 trillion (see Most Companies Don’t Pay Federal Taxes). From 1998 to 2005, an average of 68 percent of foreign companies doing business in the U.S. paid zero income taxes and 66 percent of U.S. domestic corporations paid no federal income taxes.

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