Why do corporations find tax loopholes and avoid paying atxes/lowering prices if they make billions in profit?

Answer 1

So they can justify paying $100 million bonuses to their top executives.

At the same time and for the same reason, they fire workers and outsource to China cheaply.

Answer 2

Find tax loopholes? The last time I checked major corporations had lawyers stacked ten deep on K street in Washington lobbying to create loopholes. Why use someone else's loophole when you can buy a senator and have one tailor made for just you. As for the why, it is just greed. Plain old every-day run-of-the-mill greed.

Answer 3

One reason they make billions is because of the tax loopholes. Tax is a significant part of the expenses before the bottom line. Large enough firms even have full time tax lawyers on the payroll - not outsourced!!!

Answer 4

Why do YOU try to pay the least taxes possible? The reason is the same. Contrary to popular belief, there are no loopholes in the tax code. Every provision was deliberately put in for a reason. That is another reason to support a flat tax or a national sales tax. They don't allow politicians to use the tax code to reward or punish behavior.

Answer 5

As long as it's money before anything else, this is the way it's going to be. And the person who said that corporations write in loopholes is spot on. If you don't have one, get one; they're all the rage in the corporate set.

Answer 6

Corporations have to answer to their stockholders. Stockholders want profit. Sadly, what this means is that corporations typically take the short rather than the long view, and go for whatever fluffs up the bottom line. I think it's one of the flaws of capitalism.

Answer 7

it is barely ok whilst that employer is giving each little thing back to usa, one way or the different. I have no concern in any respect with charities paying 0 taxes in the event that they are utilising their money to assist the country. If GE or Exxon get a tax harm for arising eco-friendly power--it is how government works--merely assessment regardless of if the wear is merely too great to be honest or too small to be triumphant. I have no concern with the prevalent deduction--i do no longer think of people could overpay taxes because of the fact they do no longer experience like saving receipts or hiring an accountant whilst they are no longer creating dissimilar money to be taxed in the 1st place. What dissimilar people are not getting approximately removing deductions is which you do away with between the main useful approaches the government can impact coverage. any incorrect way is to bypass a regulation, and high quality or imprison the lawbreakers. The 0.33 decision is for the government to evade doing something and merely desire each little thing does high quality by using itself. in case you do no longer choose 0 regulation and sensible anarchy, and you do no longer choose the government to make each little thing the two needed or forbidden, then the different decision is for the government to impact persons and businesses to make options with their spending that are reliable for the entire united states of america. it is achieved with money--the two bribes (credit and deductions) or fines/effects. how many people could have a 401K retirement account if it wasn't tax-loose? the government could advantages in charge options--otherwise they pay for cleansing up people's irresponsible errors. i've got no longer heard all of us advise that we enable broke people die from their financial errors yet, so one way or yet another, all of us finally end up with the invoice. the government could do what it may to maintain that invoice small--and on occasion that is composed of bribing us to be arranged to look after ourselves--by using paying for for a house, saving for retirement, having clinical coverage, and all the different approaches persons and companies can plan for their destiny and strengthen the way forward for the country.

Answer 8

I am interested in how they find these loopholes and why Congress doesn't close them down to make them pay their fair share

Answer 9

Because the people that own shares in the company demand that profits be maximized no matter what.

Answer 10

greed. and the government won't do anything about it, because if they tried all the companies would move offshore and screw up the economy. so who's left to pay the bills that companies are clever enough to avoid? thats right, you, average taxpayer, the government needs you to pay up and shut up, theres a good soldier.