Outrage Over Big Corporations Not Paying Taxes

Tax gadfly Robert McIntyre of Citizens for Tax Justice believes that US corporations are trying to pull a fast one on American citizens, by not paying their share of taxes.

This latest "outrage" revolves around the commonplace tactic of corporations obtaining refunds of taxes paid in prior years through the use of tax losses generated in the current year.

Mr. McIntyre has a real problem with this arrangement.

"If you go out and try to make money and you don't do it, why should the government pay you for your losses?" McIntyre said. "It's as simple as that."

Well, Bob, the government is not quite paying anyone for these losses. These corporation's are simply requesting refunds of previously paid taxes, just like any business is entitled to.

"If you or I lose money in the stock market, we don't get to carry back our losses to any significant degree," said McIntyre.

Nice attempt at ginning up some outrage Bob, but the fact is that losses generated by individuals in the stock market can be carried forward indefinitely. In addition, self-employed individuals can take advantage of this same "loophole" that corporations can.

The fact is, there is no outrage in corporations or anyone else for that matter obtaining refunds of taxes previously paid when a loss is generated in a later year. It's simple tax policy, no more and no less.