Federal Government

U.S. Corp. Taxes High, But Few Actually Pay

Senior Sen Mike Crapo put out a PRESS RELEASE today claiming the USA Corporate tax rate is the highest on earth and called the U.S. Government “antagonistic” toward job creators.

Crapo claims there is also growing evidence that high taxes stifle business growth and employee wages.

We see it a little differently. The following come to mind here in the Gem State:
–Micron hasn’t paid taxes in years because they are the largest “non-profit” in the state.
–The Boise Valley Railroad sought tax CREDITS for routine expenses to maintain their railroad track and Crapo supported the subsidy.
–Chinese owned Hoku solar panel plant in Pocatello gets urban renewal funds, energy credits, etc. and they don’t even pay their electric bill, let alone pay a single cent in taxes.
– French owned Areva continues to take taxpayer cash and has suspended its plans for a private facility at Idaho Falls–thanks to Rep. Mike Simpson.
–Dynamis avails itself of federal largess which will pay up to 30% of construction costs for a private for-profit electric plant at the Ada Landfill.
–Then you look at the largest private employer in the state–ST. LUKES–which pays no taxes at all, despite a $40,000,000 profit.
The list goes on. With Federal debt in the trillions and few companies, if any, actually paying the top rate, it makes no sense to push for tax breaks in our opinion. If a company is paying 39% income tax it is because they are making a bunch of profit and can afford to do so.

Comments & Discussion

Comments are closed for this post.

  1. Jason Robinson
    Apr 3, 2012, 2:18 pm

    The good old stand-by bribe of an envelop full of cash just doesn’t work any more, because that is too obvious. Instead, we bribe or punish with more red tape, with less red tape, with tax exemptions, and with utility subsidies.

  2. Have you ever known a politician that could do math?

  3. Only small businesses pay. When Walmart rolls into town promising a new mega box, city leaders line up to kiss the blue arse and throw all the taxes they can out the window. When I try to open a small business, they throw every fee they can think of on me.

  4. It’s the old pay your taxes or have a lawyer and CPA so you don’t have to. Solution is to have a flat tax without exception, even on the churches and farmers. Lawyers and CPAs will need to find something else to do which will actually contribute to the good of the nation, rather than drag on it like they do now. And no more kissing Wal-Mart’s a$$, no favors, no earmarks, no nothing. Make lobbying unlawful. And no more cash transfers out of the country either. (Did you know that cash sent to mexico is the #2 or #3 contribution to their GDP)

  5. We are going to have a nearly identical economic curve to 2008-9 due to the election… puff it up and let it crash after the vote. (Their timing was off a little in 08)

  6. As John Bujak and S. McGee has shown us, rules only apply to those who are not apart of big business, or the republican party in Idaho. (notice the hint of sarcasm)

  7. I attended a local service club program several years ago by a representative of Blue Cross from the Seattle Portland area and what he had to say was amazing. The reimbursements for services in this valley are routinely 30% higher than the Seattle Portland area. The reason is non-profit ownership of all the hospital services, doctors like orthopedists groups in particular banding together demanding huge increases in fees.

    Add to all this the crony capitalism in the Idaho Legislature that killed a bill to allow people to seek health insurance across state lines. In short, we have very little competition in the medical arena in this area and there is a concerted effort to keep it that way at all levels of the health care and pharmaceutical industry.

  8. Jason Robinson
    Apr 4, 2012, 12:58 pm

    Interestingly, nothing in this article refutes Crapo’s press release, despite the tone of the article seeming to be full of rebuttal.

    All the OTHER businesses not listed in this article still pay those high property taxes, income taxes, and utility fees.

  9. Heretofore, tax cuts were used by companies to expand plant and equipment purchases and ultimately hire more people. We have a new class of people running things on a global scale. Financial wizards are taking the cuts and using them to expand operations elsewhere. Cheap labor, cheap land and no environmental issues are incentives for all these broad based moves. Corporations are running the governments these days.

  10. When Republicans say they support free market capitalism someone should shout “liar”.

  11. I guess I will be the only one on here to say that I believe the article takes the wrong approach. Sure you can point out areas that it doesn’t work, show me one idea that has ever been implemented that works 100% of the time. You named just a few companies and failed to mention the ones that are working like they were designed to i.e. Scentsy and PKG. you fail to mention the trickle down affect of these companies building and/or employing. You fail to mention the amount of taxes that are generated as a result of a company coming in. You fail to mention that when Wal-Mart comes in so do all the businesses that follow them, including small business.

    I am just amazed that most of the people commenting on here have never owned their own business, clearly by their comments, therefore they lack the understanding of what it takes to make or break it. Maybe that is why we are in this mess to begin with, with your all mighty prophet Obama.

  12. I agree with Snoop. We need another Bush for president since we can’t have Rick Santorum. A real family guy to lower the gas prices and create jobs. More God ,guns and guts is what’s going to turn our economy around (less gay marriage too).

  13. Diane Sower
    Apr 26, 2012, 9:20 am

    Let’s see, start naming a few. Chevron, Wells Fargo, Bank of America, CitiCorp, all well worth billions, and all pay zero in taxes. That’s right, zero. You and I pay up the ying yang, but they don’t, and God forbid the conservatives don’t ensure the top 1% are taken care of. I remember when my son was in school, and working part time. One year he earned $5000.00. For that year, he was audited. That’s right, some goon was paid to audit 5 grand.

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