As the rest of us fill out our federal tax returns this year, we can all take great comfort in the fact that many of the largest corporations in the United States are not paying any federal taxes at all. Over the past couple of decades, multinational corporations have become incredibly skilled at avoiding taxes. It has become routine for big companies to shift profitable operations to divisions in other countries where tax rates are lower. It has also become routine for big companies to set up “sham headquarters” in tax havens around the world. Many U.S. corporations have even renounced their status as American companies in order to avoid paying taxes. All of this has had a dramatic impact on the income of the federal government. Corporate taxes now account for less than 7 percent of all federal revenue. Back in the 1950s they accounted for about 30 percent of all federal revenue. Meanwhile, the 35 percent corporate tax rate in the United States is chasing companies (and the accompanying good jobs) out of the United States at a blinding pace. In a world where big corporations will go to any lengths to “game the system”, this is absolutely devastating our economy. (Read More...)