Big Surprise: Corporations Evade Taxes..

When Forbes magazine, the keeper of the list of the 400 richest Americans, warns that corporations not paying taxes on their profits will raise your hackles, you might wonder about the article’s April 1 dateline. If it turns out not to be an April Fool’s joke, things must be really bad.

And indeed they are. As Forbes reports, General Electric, the third largest U.S. corporation, turned a profit of $10.3 billion in 2010, paid no corporate income taxes, and got a “tax benefit” of $1.1 billion on taxes owed on past profits. And from 2005 to 2009, according to its own filings, GE paid a consolidated tax rate of just 11.6% on its corporate rates, including state, local, and foreign taxes. That’s a far cry from the 35% rate nominally levied on corporate profits above $10 million.

Nor was GE alone among the top ten U.S. corporations with no tax obligations. Bank of America (BofA), the seventh largest U.S. corporation, racked up $4.4 billion in profits in 2010 and also paid no corporate income taxes (or in 2009 for that matter). Like GE, BofA has hauled in a whopping “tax benefit”—$1.9 billion.