- Days left
This week journalists and bloggers were lamenting the fact that a full two-thirds of United States corporations pay no income tax to our federal government. Boo-hoo.... They're apparently getting away with something horrible in the eyes of these writers.

I see it completely differently. First of all, corporations don't really pay any income taxes at all. People do. Every time a company decides to sell something to you, the price depends on a lot of things, including how much it costs to make the item, how much profit the company wants to make, and how high the company's tax bill is. You, the consumer, end up paying the corporate income tax with higher prices. And you want more of that?

My second big problem with people demanding more corporate income taxes is the result that would have on U.S. businesses. Our country really doesn't need anything else to make us less competitive in manufacturing. The same people moaning about big businesses making too much money and not paying enough taxes are the same ones belly-aching about jobs going overseas.

Newsflash for you: More taxes here will mean more jobs going overseas. It's simple economics, and companies must turn a profit in order to stay in business. Take away their profits, and you take away their reason for existing.

The focus on corporate income taxes is misguided. Look at all the other tax money the government collects via the business these corporations do. They create jobs, which creates payroll taxes, and creates income to individuals which is taxed. It sounds like there's plenty of taxing going on, and adding another layer by demanding that more corporations pay more income taxes doesn't seem necessary.

Don't forget that taxes paid to the government don't really add to our economy. The government's job is not to see how much they can collect from citizens and spend as much as possible on unnecessary programs and mandates. Let taxpayers keep their money and decide what's important to them. There will be a far bigger benefit to our economy by letting taxpayers choose where to spend their money and by letting that money work through private businesses, which are historically far more productive and efficient than our government.

Don't forget too, that our tax laws are what they are. Corporations hire tax specialists who help them figure out how to legally pay as little in taxes as they can, which means working within the tax code to increase the amount of profit kept by the companies. Cheating on taxes is wrong, but staying within the legal limits while reducing the exposure to taxes makes good business sense.... Not just for the companies, but also for the consumers who rely on the jobs they create and products and services we need and want to buy.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

TurboTax Articles

Employer Sponsored Health Coverage Explained

The Affordable Care Act, also known as Obamacare, is simpler than some people may give it credit for. The basic rule to remember is that everyone must carry Minimum Essential Coverage (MEC) or pay a penalty. Employers with 50 full-time employees or more are obligated to sponsor plans for their workers to help them meet this requirement.

How to Report RSUs or Stock Grants on Your Tax Return

Restricted stock units (RSUs) and stock grants are often used by companies to reward their employees with an investment in the company rather than with cash. As the name implies, RSUs have rules as to when they can be sold. Stock grants often carry restrictions as well. How your stock grant is delivered to you, and whether or not it is vested, are the key factors when determining tax treatment.

What is a Schedule Q Form?

The Internal Revenue Service (IRS) has two very different forms that go by the name Schedule Q. One of them is for people who participate in certain real estate investments; this is known as a Form 1066 Schedule Q. The other Schedule Q deals with employer benefit plans. It?s not something an individual taxpayer would normally have to deal with, though a small business owner might need it.

Incentive Stock Options

Some employers use Incentive Stock Options (ISOs) as a way to attract and retain employees. While ISOs can offer a valuable opportunity to participate in your company's growth and profits, there are tax implications you should be aware of. We'll help you understand ISOs and fill you in on important timetables that affect your tax liability, so you can optimize the value of your ISOs.

Add a Comment

*0 / 3000 Character Maximum