AS AMERICA BRACES FOR DRASTIC CUTS, MASSIVE CORPORATIONS KNOWN FOR DODGING TAXES RELEASE EARNINGS REPORTS
General Electric releases earnings today – GE has history of not paying federal income taxes through corporate tax loopholes
WASHINGTON, D.C. – Americans for Tax Fairness, a national coalition representing more than 275 groups pressing for a fairer tax system, released a statement today as General Electric – along with other major companies – releases its annual earnings report. The report arrives as Congress has days to act before March 1 to avoid $85 billion in arbitrary, across-the-board federal cuts—called a sequester—that will result in the loss of 750,000 jobs nationwide in 2013, according to the Congressional Budget Office. For a complete list of immediate cuts visit: http://1.usa.gov/14YOFmd.
“While millions of Americans are about to get hit by deep cuts to vital services, companies like GE and others continue to get away with paying little or no federal income taxes, while reaping huge profits. It’s time they paid their fair share of taxes, rather than sticking the middle class and vulnerable Americans with the tab,” said Frank Clemente, campaign manager, Americans for Tax Fairness. “Congress has a clear choice: continue big tax loopholes for millionaires and multinational corporations who are not paying their fair share of taxes; or protect seniors, kids and working families from these damaging cuts in services.”
Citizens for Tax Justice, a non-profit tax policy group, reviewed the federal income taxes paid or not paid by 280 big, profitable Fortune 500 corporations, including General Electric. It found that nearly 30 of the companies paid no net federal income tax from 2008 through 2011. To view the list of corporations dodging taxes through loopholes visit: http://bit.ly/Ij9Sg9. The New York Times reported that GE’s nearly 1,000-person tax department managed to achieve a negative corporate income tax rate over a 5-year period, partly by lobbying Congress for more tax loopholes. Learn more here: http://bit.ly/ZASSsg
About two-thirds of the $85 billion in federal spending cuts could be prevented if Congress enacted the “Buffett Rule,” which would require that people who make at least $1 million a year pay a 30% minimum tax – just slightly above the 28% marginal tax rate of millions of middle-class Americans. This would raise $54 billion.
A recent national survey by Hart Research shows 66% of voters nationwide now say that the richest 2% should pay more in taxes and 64% of voters believe large corporations should pay more in taxes. Congress has already cut $2.50 in spending for every $1 it has raised in new revenues; they have already achieved $2.4 trillion in deficit reduction since 2011, according to the Center on Budget and Policy Priorities. Of that amount, about $1.5 trillion has come from spending cuts and another $600 billion from new revenues on the richest 1%, with the remainder coming from related interest savings on the debt.