Everybody has to pay their taxes. But there are a lot of businesses and even individuals who managed to go around the loopholes of the system and avoid some of the taxes they should pay.
A lot of people believe there is a flaw in the current tax system. They believe it is very complex that it actually provides advantages for certain groups. There are statistics that may even prove these sentiments.
Here are some of the figures about taxes that might make you angry:
- Profitable corporations are required to pay 35% Federal tax rate.
- The average Federal tax rate that corporations actually paid back in 2010 was only 12.6%.
- Meanwhile, there are plenty of large corporations that managed to pay zero dollars in federal income taxes.
- Inversion is when a corporation changes its residence to another country. This makes that company a subsidiary of a foreign company, which means it can avoid paying U.S.-based rate taxes. This allows them to pay lower tax rate. What you call loophole, they call inventive or Inversion.
- The percentage of corporate tax incentives that resulted from Inversion is 26.2 %.
- In 2011, $47.6 billion was differed through Inversion.
- In 2011, the total dollar amount of corporate tax incentives was at $181 billion.