In performing a quick review of SEC filings of large corps with an SEC State Location Code in Florida, I found no really huge Florida Corps, like I have in every other large State, and I only found seven fairly large Florida Corps with Total Consolidated Pretax Income of more than $4 bil each, for the most recent 12 years.
Below here is the effective state corporate income tax rates paid, which are computed by dividing the current state and local corporate income tax paid by the consolidated pretax income, both in total for the past twelve years for each of these seven fairly large Florida Corps. These seven Florida Corps below had a weighted average state corporate effective income tax rate paid of 3.22%, or only a 41% discount to Florida’s low current state corporate income tax rate of 5.50%.
….……………………...........................Current………………….......State
….…………………….............................State....Consolidated..Effective
….…………………….............................Tax………..Pretax…….Tax Rate
….…………………….............................Paid……...Income……….Paid
….……………….….............................(Millions of Dollars)
..7. Darden Restaurants....................216………4,895……......4.41%
..6. Health Management Associates..180.........4,089…….....4.40%
..5. Publix Super Markets…………......647.…….14,783…….....4.38%
..4. AutoNation……………………..........219.……...5,382*……....4.07%
..3. Fidelity National Finanical.........268**…...7,268……......3.69%
..2. CSX….........................................255……...12,133……......2.10%
..1. FPL Group..................................281***...15,603…….....1.80%
Total all 7………............................2,066…......64,153…….....3.22%
* Exclusive of Asset Impairment Charges of $2.1 bil
** Both current state income tax and deferred state tax expense combined
*** Also includes provision for unrecognized state income tax benefits
I have excluded Carnival Corporation from the above list of seven Florida large Corps. Carnival has an SEC State Location of Florida, but it was excluded from the Fortune Magazine rankings of the largest US corporations. Carnival made $19.1 bil of Total Consolidated Pretax Income in the past twelve years, but because of its special income tax exemptions, has paid very miniscule amounts of US federal and US state income taxes. Some people would call this a pretty healthy tax loophole.
I have also excluded Royal Caribbean Cruises from the above list for the same reason that Carnival was excluded. Royal Caribbean Cruises made $5.2 bil of Total Consolidated Pretax Income in the past twelve years, and like Carnival, also had special income tax exemptions.
If both Carnival Corporation and Royal Caribbean Cruises were added to the above list of seven large Florida Corps, the State Tax Paid number would remain unchanged, the Pretax Income number increases to $88,374 mil, and the Effective State Corporate Income Tax Rate Paid decreases from 3.22% to only 2.34%, which is a 57% discount to Florida's state corporate income tax rate of 5.50%.
I think it makes much more sense to balance a State’s severely stressed budget by closing some of the huge Big Corp State Corporate Income Tax Loopholes, rather than by either drastically reducing critical state services like education and citizen protection, or by significantly increasing state university tuition.
Also, I think it makes sense to use some of the funds from the closing of these larger Corp State Income Tax Loopholes to provide some wise, highly stimulative, directly-targeted, job-creating tax incentives to small and medium-sized businesses.
For maximum positive effect to the US economy and to US job creation, I think the US government should let businesses have a choice on the capital expenditures they make.....they could either take 100% first year expensing, or they could instead choose a refundable investment tax credit. In the Florida Gulf Region directly impacted by the Gulf Oil spill, I think I would give bonus investment tax credit percentages for capital expenditures made, and I would also give bonus tax depreciation for real property additions made in the rental property, retail, lodging and leisure industries.
