Whose taxes are you paying, anyway?

You may recall a few days ago that I mentioned that we got absolutely jacked on our income taxes this year. You may also recall that I jokingly asked if I should just make my check out to Halliburton directly. It turns out that statement isn’t too far from the truth. Check this out:

A 2004 U.S. Government Accountability Office (GAO) study found that 61% of American corporations, including 39% of large companies, paid no corporate income taxes between 1996 and 2000. Last year, corporations shouldered just 14.4% of the total U.S. tax burden, compared with about 50% in 1940.

The above quote is taken from an article in Parade Magazine entitled “Are You Paying For Corporate Fat Cats?” It puts out some pretty interesting information about the income tax shelters that modern corporations enjoy, and the loopholes that allow some of them to pay no tax at all.

Sneaky tax tricks that corporations pull, like Halliburton moving its CEO to Dubai, are the reason that the tax burden has shifted so significantly. And the loopholes that allow these tricks seem to keep expanding as the tax breaks for the average Joe keep decreasing.

Hopefully whomever takes over in January will take a good long look at this situation, although I’m not holding my breath.