Most corporations skirt federal tax

A GAO study found that about 66% of U.S. corporations didn't pay any federal income tax.
AUG 13, 2008
About two-thirds of American and foreign corporations that do business in the United States did not pay federal income taxes between 1998 and 2005, according to a report released by the Government Accountability Office, the investigative arm of Congress. The study found that about 66% of U.S. corporations didn't pay any federal income tax. In 2005, 25% of the largest U.S. companies, with a total of $1.1 trillion in gross sales, paid no federal income taxes. To be considered a large company, a firm must have more than $250 million in assets or $50 million in sales. Meanwhile, 68% of foreign companies doing business in the U.S. during those years paid no federal income taxes. Among the 998 large foreign companies, 28% didn't pay taxes but reported $372 billion in gross receipts that year. The study covers 1.3 million corporations of all sizes, with a collective $2.5 trillion in sales. The report’s findings are a “shocking indictment of the current tax system,” Sen. Byron L. Dorgan, D-N.D., said in a statement. “The tax system that allows this wholesale tax avoidance is an embarrassment and unfair to hard-working Americans who pay their fair share of taxes.”

Latest News

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

Advisor moves: Raymond James, Baird add significant teams in latest recruiting push
Advisor moves: Raymond James, Baird add significant teams in latest recruiting push

Independent broker-dealers snap up experienced advisors as competition for established practices intensifies.

Wells Fargo names COO Scott Powell as its next chief risk officer
Wells Fargo names COO Scott Powell as its next chief risk officer

Derek Flowers, a nearly 30-year veteran, is set to retire in mid-January, handing the reins to the executive who helped lead the bank's regulatory turnaround.

Ameriprise runs advisor ads on ESPN, Golf Channel, CBS
Ameriprise runs advisor ads on ESPN, Golf Channel, CBS

The campaign spans broadcast TV and streaming, as the brokerage faces slowing client net flows and an $8.1 billion advisor team that left to launch an RIA this month.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains