In performing a quick review of SEC filings of large corps with an SEC State Location Code in Louisiana, I found only three 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 corporate income tax rates paid, which are computed by dividing the current state corporate income tax paid by the consolidated pretax income, both in total for the past twelve years for these three large Louisiana Corps. These three Louisiana Corps below had a weighted average state corporate effective income tax rate paid of only 1.37%, or a 77% discount to Louisiana’s current state corporate income tax rate of 6.00%.
….…………………….........................Current………………….......State
….……………………...........................State....Consolidated..Effective
….……………………...........................Tax………..Pretax…….Tax Rate
….……………………...........................Paid……...Income……….Paid
….……………….…...........................(Millions of Dollars)
3. Entergy…...................................306……...16,352……....1.87%
2. CenturyTel.................................107..........5,945……....1.80%
1. Freeport-McMoran Copper&Gold*.0..........7,845..........0.00%
Total of the 3………..........................413….....30,142…….....1.37%
* For 9 years 1998-2006
And these tax paid rates have come down markedly, with the effective state corporate income tax rate paid for the most recent six years being a lower 0.15%, and for the most recent year being a negative 3.96%.
Also from my quick review, it appears that New Orleans-based water transportation company Tidewater might be the next largest Louisiana company. It generated Pretax Income in the past 12 years of $2,958 mil and paid State Corporate Income Tax of $17 mil, thus a very modest effective state corporate income tax rate of 0.57%.
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.
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.
Because of the economic devastation to this area, in the Gulf Region directly impacted by either the Gulf Oil spill or by Katrina, 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, restaurant, and leisure industries.
