- Now sometimes we say, well, all the tax loopholes
all the tax loopholesbelong to corporations.
belong to corporations.
Where here's a list of the large corporate tax breaks
in the U.S. tax code.
And you can see that by far,
the largest corporate tax break is the fact
that large U.S. corporations are not required
to pay income tax on much of the income they generate
outside the United States.
The second largest corporate tax break
is for accelerated depreciation.
Which is the fact that corporations are allowed to subtract
to subtract the cost of their machinery
the cost of their machinery and equipment
and equipment at a very rapid rate
at a very rapid rate.
And therefore reduce their income taxes.
These are the largest tax loopholes
Ese are the largest tax loopholes
in the U.S. corporate tax code.
Now compare the magnitude of the numbers
of the individual tax breaks
and the corporate tax breaks.
You see that the cost of the individual tax breaks
is much larger.
The simple reason for this is that the bulk
of the income taxes collected by the U.S. government
are on individual incomes, not corporate incomes.
In a typical year,
U.S. government individual income tax collections
are six or seven times
as large as collections from corporations.
Why?
Because we, the individuals, are where the money is.
We individuals generate most of the income,
so we individuals pay most of the income tax
and receive most of the tax breaks.