Tags: tax | breaks | government | revenue

Corporate Tax Breaks as Big as Payments in 2011, GAO Says

Monday, 15 Apr 2013 03:14 PM

U.S. corporations received $181 billion in income tax breaks in 2011, as much as they paid in taxes, according to a report released today by the Government Accountability Office in Washington.

The majority of the forgone revenue stems from two breaks alone, accelerated depreciation for capital investment and the ability to defer U.S. taxes on profits earned overseas.

Corporate income tax collections peaked in nominal terms in 2007 at $370 billion. They declined during the recession as companies’ profits shrank and Congress created tax incentives to encourage new investment. They reached a bottom of $138 billion in 2009, according to the Office of Management and Budget.

The U.S. will exceed the 2007 corporate income tax revenue level in 2015, according to Congressional Budget Office projections.

U.S. lawmakers are considering lowering the 35 percent top corporate tax rate and curtailing tax breaks. President Barack Obama and Republicans in Congress both agree on that goal.

The report, requested by Democratic Representatives John Lewis of Georgia and Lloyd Doggett of Texas, was released on the day that individual taxpayers must file their 2012 returns or seek extensions.

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U.S. corporations received $181 billion in income tax breaks in 2011, as much as they paid in taxes, according to a report released today by the Government Accountability Office in Washington.
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2013-14-15
Monday, 15 Apr 2013 03:14 PM
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