Special Interest groups and big companies spent $3.22 billion in 2015 lobbying our elected officials, and have spent at least $ 3 billion each year since 2008. That money is spent to influence laws, rules, and policies that benefit themselves. Most of that money is not tax deductible for the companies. Therefore, they find it to be a good investment, since businesses don’t spend money that doesn’t yield a reasonable return.
The IRS computer system is old and needs replacing. The IRS Commissioner asked Congress for $2.7 billion over 6 years to modernize its I.T. department but congress has only given them about $.3 billion a year on average, for that department.
Within large corporations there are accounting mechanisms that allow for a variety of creative practices designed to lower tax rates. One of these is called transfer pricing. According to Forbes, “Transfer pricing is the way firms use internal bookkeeping to allocate expenses among various affiliates. For a company like Apple, nearly all the value of its products is in its patents and other intellectual property. By charging a relative pittance to a foreign…
$61.6 billion. If you work for BP, you’d know exactly what that looks like because that’s what the Gulf oil spill cost them. And according to the Washington Post, the company is looking to save billions from it in the form of tax deductions.