the proof that the small working middle class support the
illegal aliens, those on welfare, 40% of Americans on Food
Stamps, most major companies (GM, Chrysler, etc.), Social
Security, Medicare, the senseless wars—war on poverty, war on
drugs, war on education, war on crime, etc., the Aerospace
programs, the Military Industrial Complex, the Prison Industrial
Complex and all of the parasite bureaucrats who produce NOTHING
and their luxurious life styles, from the street sweepers to the
president, including all the black-holes they throw our money
down. They ARE the goose laying the golden eggs and they’re
being taxed to death. And when they die, and they will, the
world will collapse. That’s why our government needs 2 billion
rounds of ammo…
Abolish The Income Tax: You Won’t Believe Who Is Getting Away
With Paying Zero Taxes While The Middle Class Gets Hammered
By Michael, on February 18th, 2013
The federal income tax is a bad joke and it needs to be abolished.
All over the nation, hard working American families are being
absolutely crushed by oppressive levels of taxation, and our
politicians are constantly
coming up with new ways to extract money from all of
us every single year. Meanwhile, many ultra-wealthy Americans
and many of the most profitable corporations in the country pay
little to nothing in taxes. In fact, as you will see below,
there are dozens of very prominent corporations that make
billions of dollars in profits and yet don't pay a dime in
taxes. Tax avoidance has become a multi-billion dollar industry
in the United States. Those that have the resources to "play the
game" use shell companies, offshore tax havens and the thousands
of loopholes in our tax code to minimize their tax burdens as
much as possible. Meanwhile, the rest of us get absolutely
hammered. This is fundamentally unfair. The federal income tax
system is irreversibly broken at this point, and it is time to
abolish it. If you think that the federal income tax system can
be "fixed", then you probably have never studied it. Our tax
code is nearly 4 million words long and it is absolutely riddled
with thousands of loopholes that favor big corporations and the
ultra-wealthy. We should come up with a better, fairer way to
fund the government. The United States once prospered greatly
without a federal income tax, and it could do so again.
Many people simply do not believe that it is possible for
corporations inside the United States to make billions of
dollars in profits each year and not pay a dime in income taxes.
Well, according to
a report put out by Public Campaign, that is exactly
what is happening. Posted below are numbers that come directly
from their report. 30 large corporations are listed, and 29 of
them had a tax burden for 2008 through 2010 that was less than
zero even though they all made enormous profits. And all 30 of
them spent more on lobbying than they did on taxes.
The numbers that you are about to see are for 2008, 2009 and 2010
combined. For "taxes paid", please note that for 29 of the
corporations a negative number is given. That means that
the net tax liability for 2008 through 2010 was actually less
After seeing these numbers, is there anyone out there that is still
willing to claim that our tax system is "fair"?...
U.S. Profits: $10,460,000,000
U.S. Profits: $4,855,000,000
U.S. Profits: $32,518,000,000
U.S. Profits: $49,370,000,000
American Electric Power
U.S. Profits: $5,899,000,000
U.S. Profits: $882,000,000
U.S. Profits: $1,666,000,000
U.S. Profits: $1,931,000,000
U.S. Profits: $1,385,000,000
U.S. Profits: $5,475,000,000
U.S. Profits: $9,735,000,000
U.S. Profits: $6,403,000,000
U.S. Profits: $4,263,000,000
U.S. Profits: $365,000,000
Integrys Energy Group
U.S. Profits: $818,000,000
U.S. Profits: $1,725,000,000
U.S. Profits: $2,124,000,000
U.S. Profits: $926,000,000
U.S. Profits: $415,000,000
U.S. Profits: $627,000,000
U.S. Profits: $4,105,000,000
U.S. Profits: $4,903,000,000
U.S. Profits: $1,292,000,000
U.S. Profits: $286,000,000
U.S. Profits: $896,000,000
U.S. Profits: $2,551,000,000
U.S. Profits: $571,000,000
U.S. Profits: $1,020,000,000
U.S. Profits: $1,977,000,000
U.S. Profits: $4,247,000,000
Taxes Paid: $37,000,000 (a rate of less than 1%)
U.S. Profits: $163,691,000,000
Just look at that combined total again.
Those 30 companies had combined profits of more than 163 billion
dollars during those three years, and yet the combined net tax
liability of those companies was negative 10.6 billion
I wish I could make my taxes look like that.
Another company that is making headlines because of their taxes
these days is Facebook.
It turns out that Facebook made more than a billion dollars in 2012
but did not pay a single dime in federal or state income taxes.
The following is from a report that was just released
by Citizens for Tax Justice...
Earlier this month, the Facebook Inc. released its first “10-K”
annual financial report since going public last year. Hidden in
the report’s footnotes is an amazing admission: despite $1.1
billion in U.S. profits in 2012, Facebook did not pay even a
dime in federal and state income taxes.
Instead, Facebook says it will receive net tax refunds
totaling $429 million.
Businessweek, Facebook has an additional 2 billion
dollars in tax credits that it will be able to use in future
Facebook says that it anticipates reducing its tax liability in
the future by an additional $2.17 billion by using further net
operating loss carry-forwards that it has banked.
And of course when it comes to abusing the tax system, the
big Wall Street banks are some of the worst
offenders. The following is an excerpt from a report put out
by the office of U.S. Senator Bernie Sanders...
Here are just a few examples of how the corporations and Wall
Street banks these CEOs work for have significantly harmed our
economy and the federal budget:
1. Bank of America CEO Brian Moynihan
Number of Offshore Tax Havens in 2010? 371.
In 2010, Bank of America operated 371 subsidiaries incorporated in
offshore tax havens. 204 of these subsidiaries are incorporated
in the Cayman Islands, which has a corporate tax rate of 0%.
Amount of federal income taxes Bank of America would have owed if
offshore tax havens were eliminated? $2.5 billion.
Bank of America has stashed $18.5 billion in offshore tax havens to
avoid paying U.S. income taxes. Bank of America would owe an
estimated $2.5 billion in federal income taxes if its use of
offshore tax avoidance was eliminated.
Amount of federal income taxes paid in 2010? Zero. $1.9 billion tax
Bank of America received a $1.9 billion tax refund from the IRS in
2010, even though it made $4.4 billion in profits.
Taxpayer Bailout from the Federal Reserve and the Treasury
Department? Over $1.3 trillion.
During the financial crisis, Bank of America received a total of
more than $1.3 trillion in virtually zero interest loans from
the Federal Reserve and a $45 billion bailout from the Treasury
2. JP Morgan Chase CEO James Dimon
Number of Offshore Tax Havens in 2010? 83.
In 2010, JP Morgan Chase operated 83 subsidiaries incorporated in
offshore tax havens.
Amount of federal income taxes JP Morgan Chase would have owed if
offshore tax havens were eliminated? $4.9 billion
JP Morgan Chase has stashed $21.8 billion in offshore tax haven
countries to avoid payng income taxes. If this practice was
outlawed, it would have paid $4.9 billion in federal income
Taxpayer Bailout from the Federal Reserve and the Treasury
Department? $416 billion
During the financial crisis, JP Morgan Chase received a total of
more than $391 billion in virtually zero interest loans from the
Federal Reserve and a $25 billion bailout from the Treasury
Department, while Jamie DImon served as a director of the New
York Federal Reserve.
3. Goldman Sachs CEO Lloyd Blankfein
Amount of federal income taxes paid in 2008? Zero. $278 million tax
In 2008, Goldman Sachs received a $278 million refund from the IRS,
even though it earned a profit of $2.3 billion that year.
Number of offshore tax havens in 2010? 39.
In 2010, Goldman Sachs operated 39 subsidiaries in offshore tax
Amount of federal income taxes Goldman Sachs would have owed if
offshore tax havens were eliminated? $3.32 billion.
Goldman Sachs has stashed $20.63 billion in offshore tax haven
countries to avoid paying income taxes. If this practice was
outlawed, it would have paid $3.32 billion in federal income
Taxpayer Bailout from the Federal Reserve and the Treasury
Department? $824 billion.
During the financial crisis, Goldman Sachs received a total of $814
billion in virtually zero interest loans from the Federal
Reserve and a $10 billion bailout from the Treasury Department.
Are you starting to get the picture?
The big banks and the big corporations make billions, but they pay
nothing or next to nothing.
The rest of us bust our rear ends to try to get ahead, and we get
by dozens of different taxes.
Over time, the percentage of the overall tax burden shouldered by
corporations has gotten smaller and smaller.
Back in 1950, corporate taxes accounted for about
30 percent of all federal revenue. In 2012, corporate
taxes accounted for less than
7 percent of all federal revenue.
These days, large corporations have become absolute masters at
avoiding taxes. In fact, there are many international tax havens
that are doing a booming business in setting up sham
headquarters for U.S. corporations. For example, the city of
Zug, Switzerland only has a population of 26,000 people but it
is the headquarters for
But corporations are not the only ones doing this kind of thing.
The ultra-wealthy have also mastered the art of legally not paying
As I mentioned in a
previous article, it has been reported that the
global elite have up to
32 TRILLION dollars stashed in offshore banks around
With that amount of money, you could pay off the entire
U.S. national debt and still have enough money left
over to buy every product and service produced in the United
States during an entire year.
It is time to admit that our tax system is broken.
Congress has had decades to fix it, and yet the abuses just keep
What we are doing is not working.
We need to abolish the income tax.
If you are still not convinced that the federal income tax is an
abomination and that we need to abolish it, here are some more
shocking facts about our tax system
from one of my previous articles about taxes...
1 - The U.S. tax code is now
3.8 million words long. If you took all of William
Shakespeare's works and collected them together, the entire
collection would only be about 900,000 words long.
2 - According to the National Taxpayers Union, U.S. taxpayers spend
more than 7.6 billion hours complying with federal
tax requirements. Imagine what our society would look like if
all that time was spent on more economically profitable
3 - 75 years ago, the instructions for Form 1040 were two pages
long. Today, they are
189 pages long.
4 - There have been
4,428 changes to the tax code over the last decade.
It is incredibly costly to change tax software, tax manuals and
tax instruction booklets for all of those changes.
5 - According to the National Taxpayers Union, the IRS currently has
1,999 different publications, forms, and instruction
sheets that you can download from the IRS website.
6 - Our tax system has become so complicated that it is almost
impossible to file your taxes correctly. For example, back in
1998 Money Magazine had
46 different tax professionals complete a tax return
for a hypothetical household. All 46 of them came up with a
7 - In 2009, PC World had five of the most popular tax preparation
software websites prepare a tax return for a hypothetical
household. All five of them came up
with a different result.
8 - The IRS spends
$2.45 for every $100 that it collects in taxes.
9 - According to The Tax Foundation, the average American has to
until April 17th just to pay federal, state, and
local taxes. Back in 1900, "Tax Freedom Day" came
on January 22nd.
10 - When the U.S. government first implemented a personal income tax
back in 1913, the vast majority of the population paid a rate of
1 percent, and the highest marginal tax rate was just
11 - Residents of New Jersey pay
$1.64 in taxes for every $1.00 of federal spending
that they get back.
12 - The United States is the only nation on the planet that tries to
on what they earn in foreign countries.
13 - According to Forbes, the 400 highest earning Americans pay an
average federal income tax rate
of just 18 percent.
14 - Warren Buffett had an effective tax rate of just
17.4 percent for 2010.
15 - The top 20 percent of all income earners in the United States
approximately 86 percent of all federal income taxes.
16 - Sadly,
as Bill Whittle has shown, you could take every
single penny that every American earns above $250,000 and it
would only fund about 38 percent of the federal budget.
Please share this article with as many people as you can. We have
now entered a time of the year when tens of millions of
Americans will be filling out their tax returns, and the pain of
going through that process will make people even more receptive
than normal to the truth about how broken our system is.
So what do you think?
Do you think that it is fair for the ultra-wealthy and hugely
profitable corporations to get away with paying zero taxes while
you get hammered?
Do you believe that it is time to abolish the income tax?