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60 of America's biggest companies paid no federal income tax in 2018 - https://www.cbsnews.com/news/2018-taxes-some-of-americas-biggest-companies-paid-little-to

by foob4r 7y ago

60 of America's biggest companies paid no federal income tax in 2018 - https://www.cbsnews.com/news/2018-taxes-some-of-americas-biggest-companies-paid-little-to-no-federal-income-tax-last-year/# https://www.cbsnews.com/news/2018-taxes-some-of-americas-big... "Just the 20 companies in our study reported in excess of $175 billion in total deferred tax liabilities at the end of 2013. They do not pay any interest to the government on this amount, even if it takes 20 years to pay it." - https://www.usnews.com/opinion/economic-intelligence/2014/08/06/the-surprising-truth-about-oil-and-gas-company-corporate-tax-rates https://www.usnews.com/opinion/economic-intelligence/2014/08...

lettergram 7y ago
Deferred taxes are different than receiving funds from government. In Huawei’s case, they also received stolen IP and granted a monopoly in certain areas. I think it’s fair to say that’s “state support”. Tax deferment is not “support” rather just not burdening the companies directly.
- chishaku 7y ago
  Subsidies and preferential tax treatment are textbook methods of state support for enterprise. This is acknowledged in the article with literally the first sentence. > China’s tech champion got as much as $75 billion in tax breaks... edit: In any case, state support for American businesses goes way beyond preferential tax treatment. Boeing, TBTF bank bailouts, farm subsidies and bailouts, wars to open up foreign markets, the list goes on for centuries...
  - 100011 7y ago
    What some are failing to do wrt. to US companies is to drop the legal fictions and instead follow the economical laws, and money. The tax-accountant fiction doesn't mean it's not economically supported (by US state). China does it more openly, in US tradition of procedural liberalism requires legal and theoretical fictions to mask what would otherwise be obvious State support.
  - lettergram 7y ago
    > The largest portion of assistance, about $46 billion, comes from loans, credit lines and other assistance from state lenders, the Journal’s review showed. The company saved as much as $25 billion in taxes between 2008 and 2018 due to state incentives to promote the tech sector. Among other assistance, it enjoyed $1.6 billion in grants and $2 billion in land discounts. My only statement is that I wouldn’t call tax subsidies government support. Support implies giving something to the company. Bailouts are arguably support, not taxing a key industry is not exactly support.
    - chishaku 7y ago
      > Support implies giving something to the company. I can understand that interpretation. From a public policy perspective though, tax subsidies are explicit support. Take an example that came up a lot in these forums, Amazon's HQ2 deal with NYC and NY state. Tax incentives were the bulk of the deal.

by foob4r 7y ago

lettergram 7y ago

Deferred taxes are different than receiving funds from government. In Huawei’s case, they also received stolen IP and granted a monopoly in certain areas. I think it’s fair to say that’s “state support”. Tax deferment is not “support” rather just not burdening the companies directly.

chishaku 7y ago
Subsidies and preferential tax treatment are textbook methods of state support for enterprise. This is acknowledged in the article with literally the first sentence. > China’s tech champion got as much as $75 billion in tax breaks... edit: In any case, state support for American businesses goes way beyond preferential tax treatment. Boeing, TBTF bank bailouts, farm subsidies and bailouts, wars to open up foreign markets, the list goes on for centuries...
- 100011 7y ago
  What some are failing to do wrt. to US companies is to drop the legal fictions and instead follow the economical laws, and money. The tax-accountant fiction doesn't mean it's not economically supported (by US state). China does it more openly, in US tradition of procedural liberalism requires legal and theoretical fictions to mask what would otherwise be obvious State support.
- lettergram 7y ago
  > The largest portion of assistance, about $46 billion, comes from loans, credit lines and other assistance from state lenders, the Journal’s review showed. The company saved as much as $25 billion in taxes between 2008 and 2018 due to state incentives to promote the tech sector. Among other assistance, it enjoyed $1.6 billion in grants and $2 billion in land discounts. My only statement is that I wouldn’t call tax subsidies government support. Support implies giving something to the company. Bailouts are arguably support, not taxing a key industry is not exactly support.
  - chishaku 7y ago
    > Support implies giving something to the company. I can understand that interpretation. From a public policy perspective though, tax subsidies are explicit support. Take an example that came up a lot in these forums, Amazon's HQ2 deal with NYC and NY state. Tax incentives were the bulk of the deal.