The news buzz today, 08-12-2008 is Most US Firms Avoid Federal Taxes .
This news buzz is based on a Government Accounting Office (GAO) report. The GAO study did not investigate why corporations weren't paying federal income taxes or corporate taxes and it did not identify any corporations by name. It said companies may escape paying such taxes due to operating losses or because of tax credits.
Soap Box Ravings can immediately hear the politicians preparing their normal BS responses. basically it will be the same old Blah, Blah, Blah, Blah....this is bad and change must be instituted; immediately.
Slow down and engage your brain. If you pay taxes, you pay taxes based on a set of rules and regulations set upon you by the IRS arm of the government. When figuring your taxes, you do your best to follow the rules/regulations because you know their are penalties for "failure to comply."
If you have more money, you may pay experts (CPA's for this discussion) to ensure you follow the vague rules while saving as much of your money as possible. The more money you have, the more it costs you to hold onto it and keep it out of the governments hands.
Corporations (businesses) have to also follow the rules. If the businesses do not, CPA's and CEO's may end up suffering the consequences.
Where does the authority for taxes come from?
From our duly elected officials in Washington, D. C., Senators and Representatives work together (or not) and generate the laws. When the President signs the Bills presented by Congress they then become law.
Once A Bill is signed into a law, then the rich and famous work with Congress to get the perks they want. Both Democrat and Republican politicians work to ensure their sources of money are satisfied.
Yet, these same politicians will now be screaming the laws must be changed.
Some lawmakers are trying to institute the "Fair Tax Act" to allow a fair tax burden on all Americans and eliminate the loopholes of the convoluted tax system of the present.
Watch those who will make noise for change but who will also do absolutely nothing to initiate change.
Learn about and support the Fair Tax at: http://www.fairtax.org
