Study: most corporations pay no U.S. income taxes

Somebody, somewhere, is surprised by this?

Apropos of which, I remember hearing that, when Castro nationalised US companies in Cuba, he compensated them based on the profit they had declared over the previous tax year for tax purposes.

This sounds too ironically neat to be true......does anyone know if it is a political urban furphy, or if there is some basis in fact?

Another argument for lower taxes....

I wonder if "corporations" in this report is restricted to C-corps or includes S-corps which generally don't pay income taxes by design.

1. It is almost a given that most new businesses and at least some well established businesses will not show a profit at least for one year over a period of time, and 9/11 that exacerbated what would otherwise probably have been a mild recession occurred between 1998 and 2005. Using a period that did not include a deep recession would provide a more descriptive picture. Businesses, corporation or otherwise, that do not show a profit will not be liable for taxes. The principals and employees that work for the corporations are paying taxes.

2. Most businesses that otherwise do not pay taxes intentionally do not show a profit by paying any earnings in salaries or draws. Those receiving those salaries or draws do pay taxes.

3. As corporate taxes go, the U.S. average statutory rate of 39.3 ranks second-highest, just behind Japan's 39.5 and well above the OECD average of 28.7. This is a biggie among incentives for USA businesses to move their headquarters elsewhere. Bring that corporate tax rate way down and you'll have a lot more businesses deciding staying home is much more attractive.
http://www.taxfoundation.org/blog/show/1471.html