In 2010 it was reported that the multinational giant, General Electric, paid no federal corporate taxes. Mostly likely it was done legally using tax loopholes that those in Congress created. Score: Lobbyists 1, taxpayers 0.
How fair is it when individuals who earn$40,000 pay federal income tax and small businesses pay substantial sums in federal taxes while corporations that earn billions of dollars pay no taxes?
All the taxes that corporations and millionaires shelter with the help of accountants and tax attorneys is one of the reasons the United States runs deficits. Congress often talks about reforming the tax code but never does.
There seems to be fair ways to keep the tax rate the same yet close loopholes that permit unfair deductions, which reduce the tax revenue our government needs but is not receiving.
With the thousands of lobbyists guarding each and every tax deduction, it is understandable that for each tax loophole that Congress wants to delete, there will be a group of lobbyist opposing it. However, there is an easy way to raise millions in tax revenue in a fair way.
It will take only one simple sentence added to the Federal Tax Code - that is: Regardless of the amount of federal tax calculated, all taxpayers whether individuals or corporations, must pay a minimum of 15 percent tax.
Adding that one sentence ensures that all corporations and wealthy individuals cannot avoid their tax responsibility by slipping through tax loopholes. This approach leaves all loopholes so taxpayers can use them lower their taxes. However, no taxpayer will pay less than 15 percent.