A new study conducted by Citizens for Tax Justice and The Institute on Taxation and Economic Policy depicts the inefficiency of our corporate tax code, highlighting the need for corporate tax reform.

Looking at 280 Fortune 500 companies profitable for all three years from 2008 to 2010 the study found;

While the corporate tax rate is 35%, the average effective tax rate for these companies was 18.5%

111 companies paid an effective tax rate under 17.5%

98 companies paid an effective tax rate between 17.5%- 30%

While some paid 0%, 30 companies had a negative tax rate over this three-year period.

The utility company, Pepco, and General Electric had the highest negative tax.

Pepco over the three-year period had $882 million dollars in profits with a negative tax rate of 57.6%.

General Electric( hold on to your socks people) had $10.5 billion in profits with a negative tax rate 45.3%.

All this was legal and I never begrudge any person or company for legally paying as little in taxes as possible. It does make me wonder if the Occupy Wall Street crowd will camp outside General Electric or march to the home of CEO, Jeff Immelt and protest. While they are at it, they can march on the home of former New Jersey Governor, Jon Corzine, and current Ceo of the recently bankrupt MF Global.

But I digress.

This study illuminates the problems with the corporate tax code. If those “geniuses” in Washington could get there acts together, they would see lowering the corporate tax rate to 20% and eliminating all tax loopholes would increase revenue and benefit more companies.

Accomplishing this would require those in Washington to remove their collective heads from their ideological, uh, rear-ends.

I won’t hold my breath