Most companies in US avoid federal income taxes

It isn't a loophole. Most corporations are small businesses. Most small businesses don't have "profits" to be taxed, because the owners are employed by the corporation and just pay any "profits" to themselves as salary, so the "corporate profit" disappears in the statistics and becomes regular wages. This will especially be the case if the business is a C-corp instead of an S-Corp.
 
Here the NYT issued a correction related to this idiotic story:

http://www.nytimes.com/ref/pageoneplus/corrections.html

Apparently the NYT multiplied the gross income of all the corporations by 35% and concluded that the government was owed some 800 billion dollars of taxes. Of course everyone knows that a business pays taxes on net income not gross income...except for the "journalists" at the New York Times. It's really shocking that anyone would be writing a business story and not know something so fundamental.
 
Ian above already noted how ridiculous this article is in light of the fact that half of business income is taxed to individuals via llc or sub s corps.

In addition, the article starts by saying that "unlike the rest of us".
The facts are that 40% of individuals pay no federal income tax. So much for "unlike the rest of us".

This article was a hatchet job written and edited by morons.
 
Quote from GTG:

It isn't a loophole. Most corporations are small businesses. Most small businesses don't have "profits" to be taxed, because the owners are employed by the corporation and just pay any "profits" to themselves as salary, so the "corporate profit" disappears in the statistics and becomes regular wages. This will especially be the case if the business is a C-corp instead of an S-Corp.
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finally someone with some common sence. most of your big companies are paying tax, but most corps are small corps. i have a few friends who have like 3 corps each for apartments and small businesses.
 
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