Some large firms can avoid taxes according to a citizens group for tax justice. Almost one dozen large firms like Boeing, GE, and Wells Fargo reported on their taxes in 2010 a combined revenue of $62 billion while paying a negative 3.6 % rate in federal taxes.
Citizens for Tax Justice is a group in Washington supported by labor unions with a desire to convince the president to rework the current corporate tax code to prevent collecting extra profits. The group alleges these numbers make the case for applying a tax overhaul to produce increased revenue for the federal government.
The president of GE claimed their company is compliant with current tax laws. They plan to have their tax forms filed no later than September and predicts a little tax liability for the year. Several elements can explain the decrease in federal tax rates and a greater profit margin like the outcome of audits on an older return. Corporations can also claim domestic expenses as tax deductions. While profits made overseas don’t count until they come back in the country so they aren’t really trying to avoid taxes.
The report also included FedEx, IBM, Honeywell, Verizon, and Exxon Mobil. The dozen corporations made $171 billion collectively between 2008-2010. but paid a 1.5 negative tax rate. Citizens for Tax Justice claim they base the research on the Security and Exchange Commission 2010 tax filings. A meeting is scheduled for tomorrow about the impact of a tax overhaul on large corporations.