This week, the Democratic members of Congress put out an estimate of potential tax receipts of the corporate income tax. The estimate assumed that corporations will pay taxes on gross receipts instead of net profits. THis assumes that corporations have no expenses and gross receipts equal net income. This is so ignorant that one must assume that that there is no understanding of what constitutes corporate income. We see this in the statements of outrage at oil companies profits, which are actually about 8.5% of gross income. These are the people who plan to run our economy if Obama is elected with a Democrat majority. God help us.
A correction was published but one wonders if the Congress members understand it.
Tags: corporations, Democrats, economics
Obama in the White House, Pelosi in the House, Reid in the Senate with a 60+ majority…many of us will be looking into the feasibility of living on a boat in international waters.
Or, DB, one can take to heart the ancient Chinese saying that out of crisis comes opportunity. Many opportunities lay ahead for these that keep theirs.
allan-san
AP Economics:
Correction: Corporations-Income Tax story
2 days ago
WASHINGTON (AP) — In an Aug. 12 story about corporate income taxes, The Associated Press reported erroneously that large corporations accounted for 25 percent of the U.S. corporations that did not pay federal income taxes in 2005. The report by the Government Accountability Office actually said 25 percent of large U.S. corporations had no federal tax liability that year.
General Motors might be one of them. I don’t know how editors can permit this sort of thing to appear in a serious newspaper.