I found this image of protesters in Bushwick, a Brooklyn neighborhood, who were raising awareness for the current state of the corporate tax code. The picture is from a website called The Epoch Times in an article called Low Tax Rates for Corporations, Wealthy Protested.
The current corporate tax rate is 35%, but corporations rarely pay a number this high. The corporate tax code is filled with loopholes that allow some of the biggest and well known American companies pay tax rates south of 5%. In particular, GE has a tax and legal department of 975 professionals who specialize in tax avoidance. (For those who dont know, tax avoidance is legal and tax evasion is illegal.) The picture shows a banner with the corporate logos of GE, Verizon, Pfizer, Citibank, ExxonMobil, Bank of America, DuPont, Time Warner, and Wells Fargo. I thought the the theme of the protest was creative, especially the use of a hula-hoop to represent the current loopholes in the tax code.
The societal side of this issue, which I plan on taking a look at this week, has an interesting argument. The “99%” is angered by the minuscule tax rates paid by some of the worlds biggest corporations. While I do agree that corporations should be paying more, I dont think companies like GE deserve blame for the problem. They are simply operating as efficiently as possible, sometimes choosing to reinvest money abroad where tax rates are lower.