Want to test whether this “zero income tax” is true for the real corporations? Go to Google, type in the name of your most hated S&P 500 corporation with the words “income statement.” Look at the net earnings (revenues minus expenses) of that corporation before income taxes — the look at how much state and federal income tax is paid.

Best of luck in finding a corporation that pays no income tax. There are a few — some actually didn’t make any profit.

More commonly, you’ll find about 40% of profits are confiscated by corporate income taxes. About 90% of the time, I suspect.

Of course, you won’t bother doing this little test. You’d rather blindly believe this “zero income tax” drivel. Truth is something that won’t interest you.

What’s being hidden here by unexplained statistics is that there are lots and lots of startup corporations that aren’t making a profit. In any given year, there could be that many, or certainly enough to pump the number up to what seems to be an outrageous high — corporations who break even or lose money … that year. If you don’t make money, you don’t pay taxes on the money.

The people who create and run corporations take huge risks. They often lose. But this is how real jobs get created. To discourage buisinesses from starting up and creating more jobs by taking the financial incentive away from the owner is counterproductive. Fewer jobs, smaller tax base, less money for the government.

You’re a banker, aren’t you?

Is that unfair? Does that mean they are making an income without paying taxes on it? Absolutely not. Every single individual who receives any kind of compensation, whether in wages or dividends, from the corporation (public or private), will be paying taxes on that income. It simply goes on their personal tax return.

Does that mean the little guy foots the bill? Again, no. It’s quite the opposite. Here are the numbers:

* According to data from the IRS, the bottom 50 percent of income earners pay approximately 4 percent of income taxes.
* The top 25 percent of income earners pay nearly 83 percent of the income tax burden, and the top 10 percent pay 65 percent.
* The top 1 percent of income earners pay almost 35 percent of all income taxes.
* The top 400 richest Americans paid 1.58 of total income taxes in 2000.

(Those are from http://taxesandgrowth.ncpa.org/news/do-the-rich-and-businesses-pay-their-fair-share)

Well the only corporations that are required to pay are federal corporations. Tampa Electric Company, Florida Power, Progress Energy, are nonfederal corporations and are not required to pay one cent of federal income tax. Know the Code and you know why only federal entities are the only one’s required to pay over the tax. Not even the American people are required to pay the tax, however they do but it is by “election” to voluntarily comply.

Alvis Jenkins, Plant City, Florida