Tuesday, August 12, 2008

Morning Demagoguery

The headline: Most companies in US avoid federal income taxes

The jist: "Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress ... about 68 percent of foreign companies doing business in the U.S. avoided corporate taxes over the same period."

The demagoguery: "It's shameful that so many corporations make big profits and pay nothing to support our country," said Sen. Byron Dorgan, D-N.D.

The facts: "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." (Kudos to the AP for including this fact.)

Politicians: We can't live with 'em, and we can't live without 'em. But we can dream.

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