Tax the giraffe!

From Larry, Wilmington, DE

We call it "the Delaware way."
We charge out-of-state businesses for the privilege of incorporating here, thus saving them larger tax bills in the states where they're headquartered. We get enough of these businesses to incorporate here so we can rake in really big bucks to keep our own taxes low.
Delaware lives off the other 49.

From Laura, Milwaukee, WI

Ben,

I obviously do not have the means to contribute more – I already contribute my "fair" share based upon my meager earnings (paying taxes 1st and all other living expenses 2nd, if able), but your company is able to. Do what is "fair" – pay what you owe(like I and many other ordinary taxpayers do), not what you want to. Take the burden off of your working customers so that they may have a little more to spend at your stores.

From Tom, Branchville NJ

If we close these loophole between states will many of these companies just move offshore or overseas to avoid the taxation weakening our economy even more than it is now.

From Keith, Raleigh, NC

It's about time that these "loopholes" are closed. Companies need to pay their fare share and be upfront and honest about their corporate layout. The article is misleading since it is not only national chains but dozens of medium sized companies do it, too. Delaware is a haven for this kind of activity. The only way it will stop is if other states close the loophole.

You'd be surprised how companies use this kind of manipulation to extort consumers. Try researching where a company is incorporated, and you'll find out that they may be known by dozens of names with all the money going to one entity. It's a travesty that more isn't done to combat this kind of abuse.

From Ben, Kansas City MO

Why don't we just end all this nonsense and get the fair tax in play?

From Edgar R, Denver, CO

How refreshing to see a business publication notice the fact that NFIB and most state Chambers advocate primarily for huge public corporations, not small or independent businesses.

The proliferation of Independent Business Alliances like the one in Santa Fe are the groups truly representing independents. Their national network is the American Independent Business Alliance.

Great to see more states doing away with some of the chain subsidies.

From Ben

Laura,

Toys R Us pays Millions. if your so interested in "fair share" tax, you have a lot more money to contribute.

From JimK, Nassau Bay, TX

This is an example where politicians take advantage of the economic illiteracy of the populace.

Businesses don't pay taxes regardless of the tax rate or structure. Customers pay taxes passed through businesses in the cost of the things they buy plus the inefficiencies and overheads at every step. Politicians love this system, because it hides the true cost of government from people who vote for them.

If Toys R Us has to pay Mass. an addtional 50 million dollars a year in taxes, the people of Mass. will have the cost of goods from the company go up 60 million dollars a year. The people won't notice the new tax bite because the individual cost of thousands of items will go up only a few cents.

Tax policies such as this leave the politicians completely unaccountable for their spending habits. Corporations can't vote them out of office and the people don't notice that they're being screwed out of an additional 10 million dollars.

In the interest of my wallet, along with those of Laura and John's, it would be far better if the state taxed the people who vote for them directly and didn't tax anyone else. The rate would be lower and pressure of the ballot box would tend to keep the state from increasing the tax rates at will.

From Laura F Milwaukee, WI

If I have to pay my "fair share" from a salary of $30,000 than large companies should pay their share as well from their large coffers. This should ease the burden on the ordinary taxpayers.

From john,winter haven florida

the shame of it is that the large corporations dont see the advantage of paying there fair share