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[quote user="Phoebe Vet"] By <a href="http://thinkprogress.org/author/pat-g/">Pat Garofalo</a> on Aug 31, 2011 at 9:20 am <div class="post"> Last year, as Americans across the country grappled with the widespread effects of the Great Recession, tax dodging by corporations and the wealthy <a href="http://thinkprogress.org/economy/2011/04/18/173902/tax-dodging-434/">cost the average U.S. taxpayer $434</a>, even as corporate profits soared 81 percent. In fact, according to a new report from the Institute for Policy Studies, “corporate tax dodging has gone so out of control that 25 major U.S. corporations last year <a href="http://www.ips-dc.org/files/3552/Executive-Excess-CEO-Rewards-for-Tax-Dodging.pdf">paid their chief executives more than they paid Uncle Sam</a> in federal income taxes”: [/quote] Neither this post nor your previous post has anything to do with the point that I was making  You cherry pick articles from the popular press and post them as if they are a meaningful response. They are not. Who is Pat Garofalo?  Is he a tax expert?  I am a CPA.  I have a reasonable working knowledge of taxation, especially corporate taxation.  I also have a masters degree in business and economics, which gives me a better than average understanding of the economic consequences of taxation.  . In any given year the stakeholders in a corporation may not incur a federal income tax liability for a variety of reasons.  The two most prevalent ones are the company lost money or has loss carry forwards from.  In a typical year 25 to 30 per cent of the Fortune 500 lose money.  Frequently it is substantial.  When a business loses money, it does not pay any federal income taxes, and if the loses are substantial, it can carry the losses forward for many years in accordance with the tax code. Dodging the tax law is not an issue.  Corporations, like individuals, manage their tax liability.  Stakeholders in corporations don't pay any more tax than is required by the tax code.  The same is true of home owners.  Most of them, as far as I know, deduct their mortgage interest and property taxes on their tax returns.  So why is managing a corporate tax liability a tax dodge, but managing your personal income tax liability smart tax planning and management? Executive pay has nothing to do with who pays corporate taxes.  Clearly, one can argue that executive compensation, which consists of relatively small amounts of cash and large amounts of performance based stock options, is excessive.  But it has nothing to do with corporate taxation, other than to say that it may or may not be a deductible business expense. </div>
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