What We Can Say and What We Can't The Government Accountability Office (GAO) released a new report today showing that an average of two-thirds of companies operating in the United States paid no federal corporate income tax from 1998 - 2005. That's right, I said none. Zip. Zero. Nada. The report was requested by Sens. Byron Dorgan (D-ND) and Carl Levin (D-MI) as a follow up to a similar report GAO did in 2004 in which they found similar levels of tax liability reported on corporate tax returns from 1996 through 2000. In fact, in 2004, GAO found that domestically controlled companies and foreign controlled companies "reported tax liabilities of less than 5 percent of their total income, an estimated 94 percent and 89 percent, respectively, in 2000." Wow. Upwards of 90 percent of companies paid at most 5 percent in federal income taxes in 2000, despite the corporate income tax rate being 35 percent. While you digest that little tidbit (or maybe choke on it), let me tell you about transfer pricing, which is at the heart of these GAO reports and a long time thorn in the side of Sens. Dorgan and Levin, who I guess think corporations should pay taxes.

Most of the popular/mainstream commentaries about Congress is that they don't their jobs - that they need to do more for the American people. We certainly have been highly critical of Congress for repeatedly not getting enough work done during the year by repeatedly failing to pass the most basic legislation that is required of them - the annual budget resolution and appropriations bills (see here, here, and here).

Yesterday, the Senate voted once again against beginning debate on a package of tax cuts called the "extenders" for the fourth time this year. The vote was 51-43, and will put off any consideration of the legislation until Congress returns from their August recess on September 8.

OMB released the FY 2009 Mid Session Review (MSR) today, and the headlines are blaring that the document revises the White House's projected