system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: If corporations are considered Legal Persons, and legal persons are required to pay income tax, why aren't profitable corporations like Merck, GE, and Verizon paying any income tax?
gpt
Business expenses are tax deductible. When you're a business, every expense is a business expense so you only pay tax on profits, not income. By careful bookkeeping and passing money between subsidiaries, the corporate accountants can make it look like the company didn't make any money so they don't owe any taxes.