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Comment by loeg | Hacker News Reader

You think public companies are just lying in their audited financial statements?

No, I think both of the following statements can be true at the same time:

1. The audited financial statement meets all requirements and is accurate according to the relevant definitions, stating that the effective federal tax rate is 30%.

2. They pay an effective federal tax rate of 3%.

I don't think those statements can be true at the same time, without significant qualifications on (2) in a way that make it meaningless. Certainly not the reasonable straightforward reading of the phrase.

Maybe you are right, but maybe the significant qualifications are on (1) in a way that make it meaningless.

There is a reason why large companies have entire departments dedicated to identifying and utilizing every available national and international tax loophole, all while working to maintain a positive public image.

> maybe the significant qualifications are on (1) in a way that make it meaningless.

I don't agree with this. Are you willing to suggest any specific qualifications you take issue with, so the rest of us can consider them?

I am by no means an expert in this field, but I do know that in the US, money is the primary source of power. Major tech companies have vast financial resources - so much so that their wealth surpasses the GDP of many countries. It's also clear that lobbying holds tremendous influence in the US. For instance, organizations like the NRA and NSSF wield significant power, which is why strict gun control measures are rarely enacted, regardless of the number of casualties from mass shootings.

1. Money translates to power

2. We know lobbying is highly effective

3. There are numerous national and international tax loopholes

I’m simply connecting these three points. Some might suggest that the government could intervene, but do you really believe Trump would challenge these major corporations while refusing to disclose his own tax returns? Absolutely not. So these companies have the required power, motivation and lack of resistence to make it happen.

https://i.kym-cdn.com/photos/images/original/002/546/187/fb1...

Companies use different numbers for different things for maximum advantage. The president of the United States does so routinely in his business dealings. One set of numbers when getting insurance and another when getting a loan.

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