Tuesday, April 6, 2010
According to Forbes, Exxon and GE Capital paid a whopping $0 of taxes in the United States last year. We could slash our nominal corporate tax rate (which is, to be fair, pretty high) if we just closed the loopholes that allow massively profitable companies to pay nothing, and, indeed, actually take money from the government in the form of subsidies. Our tax rate may nominally be progressive, but it is so complex and convoluted that the rich are able to dodge taxes that those less fortunate cannot. As a result, the tax system trends towards a flatter, more regressive form.