It’s a golden age for corporate profits. So why don’t our biggest corporations pay more taxes?
March 18, 2013 |
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The brackets are set for the big dance – the dance around tax responsibility. Most of the teams are in the bottom bracket. In this league, the lowest score wins.
Outside the stadium our nation’s kids and seniors and low-income mothers may be dealing with food and housing cuts, but on the corporate playing floor new low-tax records are being set again this year. Just as this is a golden age for sports, this is also, as noted by the New York Times, “a golden age for corporate profits.”
Corporations have simply stopped paying their taxes, perhaps using the 2008 recession as an excuse to plead hardship, but then never restoring their tax obligations when business got better. The facts are indisputable. For over 20 years, from 1987 to 2008, corporations paid an average of 22.5% in federal taxes. Since the recession, this has dropped to 10% — even though their profits have doubled in less than ten years.
Pay Up Now just completed a compilation of corporate tax payments over the past five years, using SEC data as reported by the companies themselves. The firms chosen are top-earners who have filed 10-K reports through 2012. Their US Tax figures represent the five-year total of “current” payments.
The 64 corporate teams paid just over 8% in taxes over the five-year period.
The Slink Sixteen
General Electric: The worst tax record over five years, with $81 billion in profits and a $3 billion refund.
Exxon Mobil: Made by far the largest profits in the group, but paid less than 1% in U.S. taxes, and yet received oil subsidies along with their tax breaks. Unabashedly reports a 2012 “theoretical tax” of over $27 billion, almost 90% of its total income tax expense. The company was also near the top in contractor misconduct.
Verizon: Second worst tax record, with a refund despite $48 billion in profits.
Kraft Foods: Received a refund from the public despite $13.5 billion in profits. Also a leading job-cutter.
Citigroup: One of the five big banks who are estimated to get a bailout/refund from the American public amounting to three cents from every tax dollar.
Dow Chemical: Received a refund despite almost $10 billion in profits.
Chevron: In addition to a meager 4.3% tax rate and a share of oil subsidies, the company has been the main beneficiary of tax-exempt government bonds.
FedEx: The company paid less than 5% in federal taxes while relying on the publicly-funded Post Office to deliver thirty percent of its ground packages.
Apple: Where to begin? Avoiding federal taxes, avoiding state taxes, hiding overseas earnings, engaging in intellectual property schemes, using the “Double Irish” to transfer profits from Europe to Bermuda, and underpaying its store workers despite conducting most of its product and research development in the United States.
Google: A master at the “Double Irish” revenue shift to Bermuda tax havens, while using tax loopholes to bring a lot of the money back to the U.S. without paying taxes on it. Recognized as one of the world’s biggest tax avoiders.