In performing a quick review of SEC filings of larger corps with an SEC State Location Code in Maine, I only found two companies with Total Consolidated Pretax Income of more than $3 bil each, for the most recent 12 years….one bank and one utility.
Below here is the effective state corporate income tax rates paid, which are computed by dividing the current state income tax paid by the consolidated pretax income, both in total for the past twelve years for these two Corps. These two larger Maine Corps below had a weighted average state corporate effective income tax rate paid of a modest 2.78%, which is a 69% discount to Maine’s current statutory corporate income tax rate of 8.93%.
….……………………...............Current………………............State
….……………………................State…....Consolidated..Effective
….……………………...........Income Tax…….Pretax….Income Tax
….…………………….................Paid……......Income……Rate Paid
….……………….…...................(Millions of Dollars)
..Energy East*……………......123……….....3,857………..3.19%
..Banknorth Group**………...82…………..3,520………..2.33%
Total of both………..............205….........7,377……....2.78%
* Only for the 10 years from 1998 to 2007, since it was then acquired
** Only for the 9 years from 1998 to 2006, since it was then acquired
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, including computer software investments, they make.....they could either take 100% first year expensing, or they could instead choose a refundable investment tax credit. The latter choice is necessary to permit both smaller and at least somewhat troubled companies to be treated fairly in comparison with large very profitable Corps. Many of these smaller and somewhat troubled companies are in tax loss positions, thus they cannot take immediate benefit of 100% expensing of equipment and computer software purchases.
