Federal Tax Statistics of 280 Surveyed Corporations
The statistics of two-hundred and eighty profitable corporations, between 2008 and 2010, were surveyed by Citizens for Tax Justice and the Institute on Taxation and Economic Policy.
It’s a display of objective numerical facts: http://www.ctj.org/corporatetaxdodgers/CorporateTaxDodgersReport.pdf
1} Corporate taxes paid for a quarter of the U.S. federal budget during the 1950’s. They paid for 20% of the federal budget in the 1960s. By the late 1990’s, corporations were only paying for 11% of the federal budget. Today, corporate taxes pay for a mere 6% of the federal government’s expenses. This includes the $729 billion DOD and Homeland Security tax bill, and this shows that the Republican Party repeatedly lied to the American public, in incessantly claiming that corporations are weighted-down with unbearable and disproportionate tax burdens. Right wing radio talk show hosts would logically be included in this lie.
2} The average 3-year pre-tax profit for the 280 corporations was $4.832 billion. The 280 corporations’ average effective tax rate for the same period was 18.5%. For the Years 2009 and 2010, it was 17.3%. These are much lower rates than the present statutory tax rate of 35%. In as much, American corporations benefited from federal tax subsidies as a rule and not as an exception. Some corporations even received rebate checks. Therefore, the Republican Party’s incessant claim that corporations in America are being crushed under an oppressive federal tax burden is an unconscionable falsehood.
2b} The average effective tax rate of 30 surveyed corporations was MINUS 6.7%, meaning that 30 corporations made money, simply by filling out tax forms. The average effective tax rate of 67 other corporations was 0%. In addition, 111 other corporations had an average tax rate of 4.6%. That’s 4 point 6. Meanwhile, 98 different corporations had an average rate of 24%, and an additional 71 corporations had an average tax rate of 32.3%.
3} 78 of the corporations surveyed had at least one of the three years where they paid zero or less income tax. 25 of the corporation had multiple no-tax years. These 78 corporations had a total of 108 no-tax years, out of a potential 234. The average 3-yr effective tax rate of the 78 corporations was MINUS 14%.
3b} In the Year 2008, the 22 corporations who paid zero income tax received a collective total of $3.3 billion in tax rebates. In 2009, the 49 corporations who paid zero income tax originally made a collective pre-tax profit of $78.6 billion and then received a collective $10.8 billion in tax rebates. In the Year 2010, the 37 corporations who paid zero income tax ended up receiving $7.8 billion in tax rebates.
4} Pepco Holdings, General Electric, PG&E Corp, Boeing, and El Paso each paid zero taxes for three consecutive years.
4b} Pepco’s pre-tax profit was $882 million and its after-tax profit was $508 million. This means that it’s tax rate was MINUS 57%. General Electric’s pre-tax pro- fit, for the three-year period, was $10.46 billion. It received $4.73 billion in rebates, meaning that its tax rate was MINUS 45.2%. PG&E Corp’s pre-tax profit was $4.855 billion. It then received $1.027 billion in tax rebates. This translates into an effective federal tax rate of MINUS 21.2%.
4c} Goldman Sachs’ pre-tax profit was $4.909 billion. It received $786 million in tax rebates. Therefore, its three-year tax rate was MINUS 16%. Dupont’s pre-tax profit was $949 million and it received $109 million. This constitutes an effective tax rate was MINUS 11.5%. International Paper’s pre-tax profit was $217 billion. It then received $249 billion in tax rebates. Its effective tax rate, therefore, was MINUS 114.7%. Plus, there is Eli Lilly, whose pre-tax profit was $202 million. It received a tax rebate of $208 million, thereby re- sulting in an effective tax rate was MINUS 102.9%. In contrast, the effective tax rate of St. Jude Medical was 37.5%. In fact, it was 46.2% in 2010. As an added example of tax rate disparity, Coventry Health Care’s effective tax rate was 40.8%. Humana’s was 39.1%. However, Marathon Oil’s tax rate was MINUS 40.6% and Exxon/Mobile’s was MINUS 38.3%.
4d} Marathon Oil’s pre-tax profit was $571 million and it received $232 million in tax rebates. Exxon Mobil’s pre-tax profit was $2,490 billion for a three year period and it received $954 million in tax rebates. In addition, Honeywell’s pre-tax profit was $2.966 billion. It received $510 million, meaning that its effective tax rate was MINUS 17.2%. Yet, Best Buy’s was +39.3%.
4e} The truck manufacturer, Paccar, had an effective tax rate of MINUS 72.6%. State Street Corp’s effective federal tax rate was MINUS 121.1%. Com- puter Science’s effective federal tax rate was MINUS 63.4%. Omnicare’s tax rate was MINUS 76.1%.
5} Wells Fargo received $17.960 billion in total tax subsidies. AT&T received a total of $14.491 billion. Verizon Communications received $12.332 billion in tax breaks. General Electric received $8.393 billion. IBM received $8.265 billion and Exxon/Mobil received $4.096 billion. Walmart received $2.511 billion in tax rebates, while Coca-Cola received $2.461 billion.
6} The effective tax rate for the ten Top Defense Contractors in the Year 2010 was 10.6%, an effective rate much lower than the statutory 35% corporate income tax rate.
6b} The effective corporate tax rate for the Retail and Wholesale Industry, for the past three years, was 30%. This means that a National Sales Tax would be detrimental to the United States. Quite frankly, it would be disastrous. This illustrates that Coca-Cola Cain doesn’t know what he’s talking about. A per- son who does know what he’s talking about uses formulas to convey his pro- posed policy. Such a formula will have at least one variable, signified as “x” or “n.” If the candidate uses the letter “n,” it’s a sign that his staff consists in those educated in statistics, able to perform functions known as geometric progres- ssions. 9-9-9 has ZERO basis in fact or academic conjecture. It’s an adver- tising jingle, as if it were an attempt to sale Cola and Pizza.
6c} The average tax rate for the Healthcare Industry was 30.4%, for the past three years. This is the industry which needs tax breaks which, in turn, need to trans late into lower medical costs.
6d} The effective tax rate for Information Technology Services was only 2.5% for the past three years, and the effective tax rate of the Telecommunications Industry was 8.2%.
7} The Financial Industry received $37.4 billion in tax subsidies. The Utilities, Gas & Electric Industry received $31.2 billion. The Oil, Gas & Pipeline Industry received $24.1 billion. Meanwhile, the Telecommunications Industry received $30 billion in tax subsidies.
8} The Foreign Tax Rate of 134 of the surveyed corporations was actually 6.1% HIGHER than those same corporations’ effective American tax rate. In the case of 87 of the corporations, their effective American tax rates were 15.7% LOWER than their Foreign Tax Rates. In as much, the statistical average proves that the Republican Party lied each time it claimed that corporations must operate outside of America, because the tax rate in America is too high.
8b} Concerning a corporations’ U.S. Tax Rate in relation to its Foreign Tax Rate, General Electric paid 68.2% LESS in American taxes than in foreign taxes. Goldman Sachs paid 23.7% LESS. Mattel paid 42% LESS. Chevron paid 18.7% LESS. Eli Lilly paid 30.6% LESS. IBM paid 23.1% LESS. Truck manufacturer, Paccar, had an American tax rate that was 55.3% LESS than its foreign tax rate.
9} One reason for such low effective corporate tax rates is the rapid write off of capital investments. This is known as accelerated depreciation and this shows that manufacturing can return to America in an amicable fashion.
10} There is even unfair disparity among corporations in the same industry. For example, FedEx paid 0.9% in tax over the past three years, while UPS paid 24%. This shows that the Republican Party once again lied in claiming that the American economy is based on “fair competition.”
10b} Further examples of inter-industry disparity include the following statistics: Hewlett-Packard paid 3.7% in taxes, while Texas Instruments paid 33.5%. Monsanto paid an average of 22% in income tax throughout the past three years, while its competitor, Dupont, had a tax rate of MINUS 3.4%. Also in the computer and office equipment industry is the fact that Corning’s tax rate was MINUS 0.2%, while Pintey Bowes’ rate was 30.4%. As an add- ed instance, Wells Fargo had an effective tax rate of MINUS 1.4%, while Charles Schwab had an effective tax rate of 30.2%. Even corporations get cheated by corporate greed.
Who Loses from Corporate Tax Avoidance?
Low- and no-tax companies may be happy about their ability to avoid huge amounts in taxes every year, but our current corporate income tax mess is not a good approach for the rest of us. The losers under this system include:
The general public. As a share of the economy, corporate tax payments have fallen dramatically over the last quarter century. So one obvious group of losers from growing corporate tax avoidance is the general public, which has to pay more for — and/or get less in — public services, or else face mounting national debt burdens that must be paid for in the future.
That article is four years old. It’s only gotten worse.
Well,…. not for us.
The United States now has the largest income gap of any Western nation. This income gap has been filled with debt to maintain the facade on our standard of living in order to benefit a few.
Now that the U.S. can no longer sustain borrowing; what does your party intend to do since running a country requires the same basic accounting principles as any business?
We need more tax cuts since we are the “job creators“. Mind you, I didn’t say where those jobs are.
We are prepared to match every tax cut with a spending cut.
But Congressman, that wouldn’t do anything to help erase the accumulated deficit of 30 years. That would only continue to benefit the wealthiest of Americans while the standard of living for 80% of all Americans would suffer?
Get your socialist, communist, un-American, God hating butt out of here and; “Get a job!”