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How come corporations like Walmart or Best Buy or Microsoft pay 88% of their income in taxes?

fantasy209 asked:


Microsoft’s profit accounts for $16.8 billion dollars a year on average and the US government takes almost $15 billion on taxes and Microsoft goes home with 1.8 billion…

How is this possible? Why doesn’t the government just tax 99% of their income so they become richer?
Is this why Microsoft is sending all their money to africa as charity?

Posted in Corporations.

5 Responses

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  1. Spock (rhp) said

    where are you getting this false data?

    MicroSoft’s annual financial reports are available online thru their corporate office. so are Wal-Mart’s

  2. Serge M said

    Your information is incorrect. The corporate tax rate is not as high as you imply with your numbers. You can locate the income statements of these companies on the Internet and see how much income tax and net income they report.

  3. inchca said

    Profit is after taxes are paid. You have to look at difference of gross and net. Gross is all they made, net is after taxes and such, same as all of us.

  4. lcmcpa said

    That is fictional data. Did you fabricate it yourself, or were you gullible and believed someone else?

  5. Lilya said

    Yes corporate taxes can be quite hefty, but they are not stupid, and are probably doing a whole lot to minimize their taxes(like charities).

    But corporations are taxed after expenses… so imagine this is like you paying taxes on your remaining income AFTER spending a bundle on a new car, nice vacation, etc. So it then it doesn’t seem like such a bad deal, huh?

    Also government’s purpose is not to maximize tax revenue. You can’t tax everything, because then companies (and people) would be less productive since they get to keep less, and tax rev. may decrease. This is the ‘laffer curve’ theory–>look it up!

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