If America's broke...

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How come so many corporations don't pay taxes?

Exxon paid the most taxes last year of any U.S. company, by far -- but not a cent went to the IRS for income taxes.






That's because the oil giant does business in some of the mostly highly taxed countries in the world.




Want to extract petroleum in Nigeria? Be prepared to fork over up to 85% of your profit in tax payments.




Exxon doled out more than $15 billion in income tax payments to foreign countries last year. U.S. tax codes allow companies to take massive deductions in light of those international charges, which knocked Exxon's federal income-tax bill down into negative territory.








http://money.cnn.com/galleries/2010/news/1004/gallery.top_5_tax_bills/2.html
 
Some businesses save money on taxes by logging their biggest profits in low-tax countries.




But, like Exxon, Chevron has little choice about where it can extract oil. Thanks to the billions it sends overseas, Chevron faced an effective income tax rate of 43% last year.




It's perfectly reasonable, under the tax code, for a company with multinational operations to reduce its U.S. tax bill to $0, said Eric Toder, an institute fellow at the Tax Policy Center.
"In order to avoid having profits taxed in two locations, the host country gets the first bite of the profits," he said.




Think U.S. companies should be paying the U.S. government first?




http://money.cnn.com/galleries/2010/news/1004/gallery.top_5_tax_bills/3.html
 
Like GE, Bank of America also didn't owe income taxes last year.




While the company reported net income of $6.3 billion, once you factor in dividends to preferred shareholders and costs from the bank's $45 billion repayment of government bailout funds, credits for low income housing investments and losses at its foreign businesses turned Bank of America's tax liability into a benefit, and gave it an effective tax rate of negative 44% -- a big change from the 9.5% tax rate it faced a year earlier.




http://money.cnn.com/galleries/2010/news/1004/gallery.top_5_tax_bills/5.html
 
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