Why do corporations find tax loopholes and avoid paying atxes/lowering prices if they make billions in profit?
Answer:
So they can justify paying $100 million bonuses to their top executives.
At the same time and for the same reason, they fire workers and outsource to China cheaply.
I am interested in how they find these loopholes and why Congress doesn't close them down to make them pay their fair share
Corporations have to answer to their stockholders. Stockholders want profit. Sadly, what this means is that corporations typically take the short rather than the long view, and go for whatever fluffs up the bottom line. I think it's one of the flaws of capitalism.
because business is all about making money
greed. and the government won't do anything about it, because if they tried all the companies would move offshore and screw up the economy. so who's left to pay the bills that companies are clever enough to avoid? thats right, you, average taxpayer, the government needs you to pay up and shut up, theres a good soldier.
Why do YOU try to pay the least taxes possible? The reason is the same. Contrary to popular belief, there are no loopholes in the tax code. Every provision was deliberately put in for a reason. That is another reason to support a flat tax or a national sales tax. They don't allow politicians to use the tax code to reward or punish behavior.
Because the people that own shares in the company demand that profits be maximized no matter what.
Find tax loopholes? The last time I checked major corporations had lawyers stacked ten deep on K street in Washington lobbying to create loopholes. Why use someone else's loophole when you can buy a senator and have one tailor made for just you. As for the why, it is just greed. Plain old every-day run-of-the-mill greed.
As long as it's money before anything else, this is the way it's going to be. And the person who said that corporations write in loopholes is spot on. If you don't have one, get one; they're all the rage in the corporate set.
One reason they make billions is because of the tax loopholes. Tax is a significant part of the expenses before the bottom line. Large enough firms even have full time tax lawyers on the payroll - not outsourced!
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