Many of the Largest U.S. Corporations Skip Paying Federal Taxes

Study: Many corporations pay no income taxes – Nov. 3, 2011.

Average tax paid by the largest U.S. corporations is 18.%. And let’s not mention the provision that allows companies with foreign profits to keep the money overseas tax-free until congress passes a “tax holiday” (the last one allowed the companies to return the money home with a tax rate of 8.5%.)

Obviously, after “Citizens United vs. FEC” big money has even more influence on politics and congress so we will see more of these corporate tax holidays happening. There is one proposed now by senator McCain and some othesr proposing a 5% rate.

My proposal for New Jersey however is doing away with the corporate tax altogether and instead taxing the dividend corporations pay to stock-holders. If the dividend is generated in New Jersey, it would be tax-free also, but if it is generated elsewhere it would be subject to a 50% New Jersey tax  with exceptions for personal income under $100,000 (single) and all retirement accounts.