In performing a quick review of SEC filings of large corps with an SEC State Location Code in Missouri, I found 9 large corps with Total Consolidated Pretax Income of more than $4 bil each, for the most recent 12 years.
Below here is the effective state and local 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 9 large Missouri Corps. These 9 large Missouri Corps below had a weighted average state and local corporate effective income tax rate paid of a modest 3.07%, which is a 51% discount to Missouri’s current statutory corporate income tax rate of 6.25%.
….……………………..................Current…………………......State
….……………………....................State...Consolidated..Effective
….……………………....................Tax……….Pretax………Tax Rate
….……………………....................Paid……..Income……….Paid
….……………….…....................(Millions of Dollars)
..9. Anheuser-Busch…...........1,288……..23,436……......5.50%
..8. H&R Block……………............406….......8,169……......4.97%
..7. Ameren……….....................349*…….9,872………....3.54%
..6. DST Systems.......................167……...5,225……......3.20%
..5. Leggett & Platt......................85……...4,006……......2.12%
..4. Express Scripts...................133……...6,553…….......2.03%
..3. Energizer Holdings...............78……...4,074…….......1.91%
..2. Emerson Electric…..............443…….27,558……......1.61%
..1. Monsanto............................142….....11,737……......1.21%
Total all 9………......................3,091…....100,630…….....3.07%
* Current State Tax for 2004-09 and both Current and Deferred State Tax for 1998-2003
For the most recent year, the weighted effective state and local corporate income tax rate paid by these large Missouri Corps was a much lower 1.26%. One reason for this lower effective tax rate is that Anheuser-Busch was excluded in 2009, since it was acquired earlier.
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 drastically reducing critical state services like education and citizen protection. And particularly in Missouri’s case, I think a wisely targeted, very healthy refundable investment tax credit would be very helpful to prop up the very troubled manufacturing sector.
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, with a bonus percentage for capital expenditures made by troubled manufacturers, like many of those in Missouri.
