Why is Bank of America Not Paying Any Taxes on $4.4 Billion in Income?
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By Sara FlocksCalifornia Labor Federation
Around this time every year, Californians scramble to finish doing their taxes and pay what they owe to the government.
But not everyone is paying their fair share. Forbes Magazine recently analyzed the tax returns of the top 25 U.S. companies and found out that they’re not paying much in taxes. In fact, corporations such as Bank of America, General Electric and Citigroup will not be paying ANY taxes this year --- they’re actually getting money back from the government. Forbes explains:
How did Bank of America not pay any taxes on $4.4 billion in income? Because of deductions like $860 million in tax-exempt income, $670 million in low-income housing credits and a $600 million loss on shares of foreign subsidiaries. With a provision for credit losses of $49 billion, Bank of America probably won't be paying taxes for a long time.
After taxpayers bailed out Bank of America to the tune of $45 billion and helped boost their income to $4.4 billion, Bank of America is using every possible tax loophole to
