The Big Companies Pay Low Tax Rate
A newly released government report states that big U.S. companies pay far less in federal income tax than they want the public to know.
Back in 2010, big money corporations paid taxes at a rate of 12.6 on their income. This report was put together by the General Accountability Office. When the GAO office added up the companies, state, local and foreign taxes and they discovered they paid a rate of right around seventeen percent.
In the report the General Accountability Office states that “The average effective tax rates for profitable corporations were well below the federal statutory rate even when foreign and state and local income taxes were included.”
Tax experts say that one of the biggest abusers of tax law loopholes is Apple. Reports on Apple show that the company got away with not paying any taxes again this tax season on their profits from their subsidiaries in Australia.
The new report has fired up the debate on tax reform. “Today’s GAO report provides more stark evidence, if any is needed, that large, profitable U.S. corporations as a whole are not paying their fair share in taxes. When some U.S. corporations use unjustifiable loopholes and offshore gimmicks to avoid paying Uncle Sam, their tax burden is shifted onto hardworking American families and small business. Today’s GAO report quantifies just how much of the corporate tax burden has been shifted onto other taxpayers: America’s large, profitable corporations are now paying a lower tax rate than our teachers and firefighters.” said Sen. Carl Levin of Michigan in a press release.
Categories: Federal Tax, Income Tax Tags:
Palm Beach County is Seeking Tax Relief for Domestic Partners
Several days ago Gay Rights advocates celebrated the U.S. Supreme Court decision to strike down laws that denied federal benefit rights to same-sex couples.
In the state of Florida, however, laws ban same-sex marriage so domestic partners of the counties employees are made to pay taxes on benefits the county offers. This has been the case since 2005.
Commissioner Mary Lou Berger publicly suggested that needs to change and soon. Berger has requested that the counties legal and financial teams’ investigation ways to reimburse domestic partners for the extra tax they are made to pay.
At this time it is still unknown what the change will cost tax payers if the commission votes to pass a tax reimbursement plan. Last year alone Fifty-five domestic partners were registered with the county to receive the benefits.
Just last month Miami Beach passed a new ordinance that offered a type of double reimbursement. The reimbursement pushes the total take-home pay for domestic partners closer to equal. Palm Beach County is now studying Miami Beach’s model.
“One option is that they follow the city of West Palm Beach, which calculates the employee’s income and tax bracket and reimburses the value of the federal tax, said Rand Hoch, president of the Palm Beach County Human Rights Council.”
Back in June the repeal of the Defense of Marriage Act back prohibited the government from denying benefits to same-sex married couples, but it does not change the laws in 35 states that restrict gay marriage.
“There’s not a whole lot that we can do with these types of issues because we don’t recognize gay marriage in the state of Florida,” Berger said.
Categories: Income Tax, State Tax Tags:
Tobacco Tax Hike: What it means to all
If there’s anything local convenience stores like, it’s a flurry of eager customers hoarding packs and packs of cigarettes before taxes skyrocket on July 1st, 2013.
On the said date, Minnesota’s tobacco taxes have increased by $1.60 per pack which adds up to the total state tax to $2.83 per pack. This increase means a Marlboro will now be at a state minimum of $7.83 per pack of 20’s.
What it means to the business
According to local stores and gasoline stations, their sales Sunday night saw the most dramatic spikes in their sales. Most of the stores have even reported doubling their monthly sales in the last week of June, just in time before the taxes go crazy. Another store reports selling 10 cartons in less than 20 minutes, and a woman claims to have bought stocks amounting to approximately $500, a definite steal compared to when Monday’s taxes go up.
Unfortunately for these stores, the almost sell-out performance of that week was met with very disappointing results come Monday.
What it means to the smokers
The increase in taxes was met with mixed inputs from the public’s end. While it was expected that smokers will react negatively, there are some heavy smokers who commented that the taxes may not impact their smoking habits, although they expect that it will affect their monthly budget.
A small number of smokers though, commented that higher taxes be considered as a sign to quit, or at least to motivate them to do so. Some also noted that they may resort to using electronic cigarettes, which are taxed less than tobacco.
Categories: Federal Tax, Income Tax, State Tax, Tax Law Tags: