Tuesday, April 19, 2011

Facts About Bank of America's "Nonpayment of Taxes"

Using Google, I found Bank of America's annual report on the internet.  Sure enough, it shows that US Uncut, the Daily KOS and Democratic Underground are all refuges for ignoramuses.  So much of their beliefs and philosophy is based on profound ignorance and error, so it should come as no surprise that they are equally ignorant and uninformed about corporate income taxes.

Bank of America actually LOST $2.2 billion in 2010, yet still reported $915 billion in income taxes.  Probably effecting this is a paper write-off of $12.4 billion in good will impairment, which is not deductible for taxes.  They reported a tax benefit (a theoretical refund) for 2009, but did report substantial amounts of tax expense for 2006, 2007 and 2008.  See the annual report here.  You will have to scroll through the report since it is a pdf file.

Reading a highly condensed and consolidated financial report cannot provide you with an in-depth understanding of B of A's tax situation.  For one thing, taxes reported for financial statements can differ considerably from what is reported on the tax return.  The reason is that financial reporting for taxes is often highly theoretical.  The financial statements attempt to present the income tax expense based on GAAP (generally accepted accounting principles), and include timing differences between financial reporting and tax reporting.  For example, accelerated depreciation methods for machinery and equipment may be used for tax reporting, but straight line depreciation for financial reporting.  This results in "deferred" taxes, taxes that may not yet be due on the tax return.

Once again, to really understand what a corporation paid in taxes for any given year, you need the corporate tax return.

In any case, there is nothing in the annual report of Bank of America that implies that this corporation "pays no taxes."

Conclusions:  Leftists sources are full of bovine excrement regarding "corporations not paying taxes."  Their claims are anecdotal, general and offer no support or specifics.  For that reason, they can be discounted in their entirety.


BB-Idaho said...

Yep, loose $2.2 billion and up the CEO compensation from $6 million to $10 million. ...and folks think the government is screwed up....

Stogie said...

BB, got any specifics about your claim? Those losses you refer to were from bad mortgages that you liberals caused. I think Democrats should all be highly taxes to compensate corporations for the damages that liberals caused.

Anonymous said...

The gray-wearers have always had to run away when the final die was cast. The 'rebel yell' is a cream of fear. It's okay, dude, my friends and I aren't laughing at you in a mean way, just a sympathetic one. It's so cute when a kid covers their ears and goes "I-can't-hear-you"-- and one with a cigar is a YouTube moment for sure! =D

Stogie said...

Anonymous, I am certainly not afraid of an adolescent like you, who must rely on harrassment rather than argument. I am quite content to allow the reader to determine who has won this debate. You are particularly weak in critical thinking and argumentation; I can assure you, I feel no discomfort in anything you have said.

Basically, I did: you failed to refute a single salient point of mine and simply gushed your personal philosophies, rationalizations and insults.

You are a troll, someone who merely wants to hijack a discussion and waste the blogger's time. For that reason, I am now requiring that all commenters log in and no one can post anonymously.

Anonymous said...

Please explain how the collapse of the mortgage industry from the unbridled, greedy and under regulated banking industry is a liberal or conservative cause for blame? Didn't this happen after 8 or 9 years on Bush's watch (or neglect?)

My generation's only hope is for ignorant old mean white guys like you (and your generation) (Chaney, Rush, Beck, etc) to die off. You have run this country into the ground thanks to your ruling philosophies of fear and greed. Conservative AND Liberal.

You also seem to need to learn another coping mechanism other than fear and hate. It seems from your site that you have a lot of hate and anger: Blacks, Hispanics, Native Americans, Muslims, Gays....etc. Where does it end for you, xenophobe. You need to take a history class. We are a nation of immigrants. We destroyed our indigenous population. America will change and grow as it always has. Maybe not to your liking but you have no control over it.

I'm sure, however, that with your heart so filled with fear and hate, you are a "good" Christian. Take a page from the good book, love your neighbor. "For that which you do unto the least of my brothers you do unto me." KW (Texas)

Stogie said...

Anonymous, or KW from Texas, I have explained the financial crash numerous times on this blog and am not going to repeat it. Do a search of the blog if you are really interested (which, of course, you are not).

As for your sweeping condemnation of this blog, it is obvious you are just a mindless left wing troll peddling sound bites and generalizations.

I am not a Christian nor a xenophobe, but you are a thoroughly propagandized Marxist who is incapable of critical thinking or analysis. Fuck off.