Many big corporations are not paying their income tax

August 20, 2008 · By ProfitEdition News Filed Under Economy

Between 1998 and 2005 no federal income tax was paid by approximately two third of the nationalistic U.S. corporations, where the 68 percent of the foreign companies having business in US evaded their share of corporate tax in the same period as revealed by a survey report by Government Accountability Office on 12 August.

GAO stated that in 2005, despite of $2.5 trillion in sales collectively, 38,000 foreign companies are those that had no tax liabilities and no income tax is paid by 1.2 million companies, after inspecting Internal Revenue Service data, together with 110,003 tax returns. Out of this tax defaulting companies around 25 percent are measured big companies that mean at least $250 million in assets or $50 million in receipts.

On the other hand in July federal budget deficit climbed to $102.8 billion together with spending of $15 billion to guard depositors at unsuccessful banks. In July 2007 this federal budget shortfall is registered $36.4 billion which means that this year it is increased to around three times of last year.

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