The man at the helm of the Walt Disney Co. is fed up with America's corporate tax system.
Disney CEO Bob Iger told CNN Money that the U.S. tax system is "ridiculously complex" and its corporate tax rates are so high they're "anti-competitive." Iger claims many companies, including Disney, are forced to pay too much money in taxes to the U.S. government. He says:
"It doesn't mean that a company shouldn't pay taxes, but I think the structure is off ... the tax base should be lowered, and the loopholes should be closed."
Businesses and corporations often complain that at 35 percent, the U.S. has the highest corporate tax rate in the world. That's true, but in reality, most businesses don't pay Uncle Sam anywhere near that percentage.
The U.S. Government Accountability Office estimates that after applying credits, deductions and exemptions, corporations pay closer to 12.6 percent on average.
The GAO also recently revealed that nearly 20 percent of large American corporations that reported a profit in 2012 paid no federal income taxes.
Iger's harsh criticism of the U.S. tax system comes just two weeks after the head of Disney blasted presidential candidate Sen. Bernie Sanders for accusing the Walt Disney Co. of paying its workers low wages while Disney brings in record-breaking profits. According to The Wrap, Iger posted this private Facebook message on May 24:
"To Bernie Sanders: We created 11,000 new jobs at Disneyland in the past decade, and our company has created 18,000 in the US in the last five years. How many jobs have you created? What have you contributed to the US economy?"
Iger told CNN Money that Disney is a "positive for the United States and for the world."
Two former employees have sued Disney, claiming the entertainment company laid them off, along with hundreds of other American workers, and replaced them with cheap foreign workers.
What do you think of Iger's condemnation of the U.S. corporate tax system? Sound off below or on our Facebook page.
SAN FRANCISCO, CA - OCTOBER 06: Walt Disney Company Chairman and CEO Bob Iger speaks onstage during 'North Meets SouthÂBridging Silicon Valley and Hollywood' at the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 6, 2015 in San Francisco, California. (Photo by Michael Kovac/Getty Images for Vanity Fair)
LOS ANGELES, CA - NOVEMBER 07: LACMA Trustee Willow Bay (L) and the Walt Disney Company chairman and chief executive officer Bob Iger attend the LACMA Art + Film Gala honoring Alejandro G. IÃ±Ã¡rritu and James Turrell and presented by Gucci at LACMA on November 7, 2015 in Los Angeles, California. (Photo by David Livingston/Getty Images)
HOLLYWOOD, CA - OCTOBER 12: Television host Kelly Ripa and Bob Iger pose with her star on the Hollywood Walk of Fame on October 12, 2015 in Hollywood, California. (Photo by Mark Davis/Getty Images)
SAN FRANCISCO, CA - OCTOBER 06: (L-R) Willow Bay, Walt Disney Company Chairman and CEO Bob Iger and filmmaker George Lucas attend the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 6, 2015 in San Francisco, California. (Photo by Michael Kovac/Getty Images for Vanity Fair)
Robert 'Bob' Iger, chairman and chief executive officer of Walt Disney Co., left, and his wife Willow Bay, arrive at a state dinner in honor of Chinese President Xi Jinping at the White House in Washington, D.C., U.S., on Friday, Sept. 25, 2015. The U.S. and China announced agreement on broad anti-hacking principles aimed at stopping the theft of corporate trade secrets though President Barack Obama pointedly said he has not ruled out invoking sanctions for violators. Photographer: Andrew Harrer/Bloomberg via Getty Images
ANAHEIM, CA - AUGUST 15: The Walt Disney Company Chairman and CEO Bob Iger took part today in 'Worlds, Galaxies, and Universes: Live Action at The Walt Disney Studios' presentation at Disney's D23 EXPO 2015 in Anaheim, Calif. (Photo by Jesse Grant/Getty Images for Disney)
ANAHEIM, CA - AUGUST 15: (L-R) The Walt Disney Company Chairman and CEO Bob Iger and actor Harrison Ford and director J.J. Abrams of STAR WARS: THE FORCE AWAKENS took part today in 'Worlds, Galaxies, and Universes: Live Action at The Walt Disney Studios' presentation at Disney's D23 EXPO 2015 in Anaheim, Calif. (Photo by Alberto E. Rodriguez/Getty Images for Disney)
Walt Disney Company chairman and CEO Bob Iger speaks about the new Shanghai Disney Resort during a press event in Shanghai on July 15, 2015. US entertainment giant Disney gave the first detailed preview to the media for its planned theme park in Shanghai, promising Chinese features and new attractions unlike its five other resorts, executives said. AFP PHOTO / JOHANNES EISELE (Photo credit should read JOHANNES EISELE/AFP/Getty Images)
Robert 'Bob' Iger, chief executive officer of The Walt Disney Co., speaks during the annual Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 27, 2015. The conference brings together hundreds of chief executive officers, senior government officials and leading figures in the global capital markets for discussions on social, political and economic challenges. Photographer: Patrick T. Fallon/Bloomberg via Getty Images
HOLLYWOOD, CA - MARCH 01: (L-R) Chairman and chief executive officer of The Walt Disney Company Bob Iger, actress Lily James and Chairman of The Walt Disney Studios, Alan Horn attend the premiere of Disney's 'Cinderella' at the El Capitan Theatre on March 1, 2015 in Hollywood, California. (Photo by Kevin Winter/Getty Images)
HOLLYWOOD, CA - FEBRUARY 22: Chairman and Chief Executive Officer of The Walt Disney Company Bob Iger (R) and TV personality Willow Bay attend the 87th Annual Academy Awards at Hollywood & Highland Center on February 22, 2015 in Hollywood, California. (Photo by Kevork Djansezian/Getty Images)
LOS ANGELES, CA - May 2: Actor Billy Crystal and Disney CEO Bob Iger attend Game Seven of the Western Conference Quarterfinals during the 2015 NBA Playoffs on May 2, 2015 at Staples Center in Los Angeles, California. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2015 NBAE (Photo by Andrew D. Bernstein/NBAE via Getty Images)
If you earn money selling your words to websites and other publishers, the Internal Revenue Service will likely say you’re a small business owner. Freelance income is self-employment income, and so are any royalties you receive for that book you published or self-published. That can be a good thing, because the self-employed are privy to some tax perks that employees don’t usually receive.
The IRS considers unemployment compensation to be taxable income—which you must report on your federal tax return. State unemployment divisions issue an IRS Form 1099-G to each individual who receives unemployment benefits during the year.