Cut education, medicare, social security?? Those leaches of our resources! Video corporation shows $1.2 billion profit yet reports a net loss using tax loopholes... !

There is no lack of money.  It is about distribution.  The Republican choir kvetches about liberals wanting to redistribute funds from the wealthy (all of whom have 'worked hard' for their dollars) and give to the poor (all of whom are lazy scumbags).  Well, without going into a whole diatribe on the issue, let me simply say, there is, right now...always has been...always will be...some form of redistribution of funds.  It just seems when the redistribution takes a form that favors those already well-cushioned financially, it is labeled "earned"..."deserved"..."necessary." 

 Because video game makers straddle the lines between software development, the entertainment industry and online retailing, they can combine tax breaks in ways that companies like Netflix and Adobe cannot. Video game developers receive such a rich assortment of incentives that even oil companies have questioned why the government should subsidize such a mature and profitable industry whose main contribution is to create amusing and sometimes antisocial entertainment.
For example, Electronic Arts of Redwood City, Calif., shipped more than two million copies of Dead Space 2 in the game’s first week on the market this year. It shows a total of $1.2 billion in global profits the last five years using an accounting method that management says captures its operating profits.
But largely because of deferred revenue, deductions for executive stock options and a variety of accounting requirements, the company officially reports a net loss for the period. And the company reports that it paid out $98 million in cash for taxes worldwide in those years.
Neither corporations nor the government make tax returns public, and the information most companies disclose in their regulatory filings is insufficient to determine how much they pay in federal taxes and how that compares to the official United States corporate rate of 35 percent.

http://www.nytimes.com/2011/09/11/technology/rich-tax-breaks-bolster-video-game-makers.html?_r=1&nl=todaysheadlines&emc=tha2