Thirty companies paid no U.S. income tax 08-10: report

(Reuters) - Thirty large and profitable U.S. corporations paid no income taxes in 2008 through 2010, said a study released on Thursday that arrives as Congress faces rising demands for tax reform, but seems unable or unwilling to act.

Pepco Holdings Inc, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent, among the 280 Fortune 500 companies studied.

The statutory U.S. corporate income tax rate is 35 percent, one of the highest in the world, but over the 2008-2010 period, very few of the companies studied paid it, said the report.

The average effective tax rate for the companies over the period was 18.5 percent, said Citizens for Tax Justice and the Institute on Taxation and Economic Policy, both think tanks.

Their report also listed General Electric Co, Paccar Inc, PG&E Corp, Computer Sciences Corp and NiSource Inc as among the 30 that paid no taxes.

What these articles never do... is accurately describing the entire situation.
I worked for 16 years as European Manager in Europe and had to file my American Taxes each tear. ( By the way we are the only country that demands Tax returns from it's citizens maintaining a permanent residence outside the country)
Most American Companies doing substantial business overseas start companies in those countries because bit is more efficient and cheaper than exporting from here. No import duties, shipping marketing,etc,etc. Just like even more foreign companies manufacture here, see the Auto Industry.
As far as taxes are concerned, the primary tax obligation is to the country of manufacture,not of ownership. Example: If I manufacture a product in Germany, my primary obligation is to adhere to the German law as well as their Tax laws. Under international Treaty, which we are signatory to, I will (have to) file my American Taxes and I am given a Tax credit of German Taxes paid directly against my American Taxes. IT IS NOT A WRITE OFF,BUT A CREDIT.
That's the Law.
It amuses me all the time is that many want to have everything manufactured in this country by American companies. However, they would be the fist ones to complain about the high prices. Forget the fact that our American companies could not market (sell)their products overseas for the same reason. Most of those companie’s profits come via foreign business. I could go on and on ..................

UHH Corporations NEVER pay ANY Taxes, thier customers pay the taxes.

And their employees. I have no problem with them not paying taxes, but it should be the same for all, not just the largest that can afford an army of lawyers, accountants and lobbyists. Our byzantine tax and regulatory system is clobbering small businesses which are the heart of economic growth and job creation.

Our byzantine tax and regulatory system is clobbering small businesses which are the heart of economic growth and job creation.

Very true. And the creators of this byzantine tax and regulatory system are Congress. They made the problem and we have to live with it for now.

If you worship at the Fairtax, or even the 9-9-9 alter you'd believe that their prices are/should be lower as a result of their reduced tax burden.

I can't speak for all 30 but I know for a fact that when it comes to GE and PG&E it's a great fallacy based on misinformation and wishful thinking..

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