2006-07-27 04:43:03 · 5 answers · asked by lthudson14 1 in Business & Finance ➔ Taxes ➔ United States
Actually, corporations do get around taxes. There are credits and deductions that are available to big corporations that aren't available to anyone else (particularly small business owners). There are lots of fancy things you can do with depreciation, depletion, stock options, patents, goodwill, timing of accruals, etc. I could go on and on about how it's done.
As many business owners say, the best investment you can make is a sharp attorney and an aggressive (but legal) accountant.
2006-07-27 06:23:39 · answer #1 · answered by SuzeY 5 · 2⤊ 1⤋
They don't get around taxes. The highest bracket for corporations is 39%...while for individuals its only 35%. I am in the process of setting up a company and chose NOT to do a full C corp specifically for that reason!
Other than that...they have many of the same deductions we as individuals have...business expenses, real estate taxes, etc. And, they obviously don't have a few of the deductions we as individuals have- like dependants (kids, etc).
2006-07-27 12:05:31 · answer #2 · answered by tsbr1963 6 · 0⤊ 0⤋
"Getting around taxes" implies being fraudulent in tax reporting. All of that is obviously illegal.
Anything that is an ordinary or necessary business expense is deductible. Corporations are taxed on their taxable incomes, with certain modifications. Taking full advantage of legitimate tax deductions is NOT illegal. That is the opinion of the tax courts.
2006-07-27 12:39:53 · answer #3 · answered by Molly 6 · 0⤊ 0⤋
They don't. That is a buch of Left Wing Spin. Corporations pay over 80% of the total money collected by taxes.
2006-07-27 11:47:34 · answer #4 · answered by Matt I 2 · 0⤊ 0⤋
They don't. ExxonMobil, for example, paid $23.3 billion in income tax on $59.4 billion in income in 2005. That 39% effective tax rate is higher than any personal effective tax rate.
2006-07-27 11:55:02 · answer #5 · answered by Oh Boy! 5 · 0⤊ 0⤋