In an earlier post, I summarized the effective State and Local Corporate Income Tax Rates Paid by the 370 Most Profitable US Big Corps, which generated Core Pretax Income in excess of $5 bil each for the most recent 12 years. Core Pretax Income is exclusive of large Asset Impairment Charges, like ones resulting from the Ceiling Test for Oil and Gas companies, and from Goodwill Impairment for companies in all industries.
I am interested to see what happens with the effective tax rates for the Medium-sized Corps, which earn just below that of the most profitable, very Big top 370 firms. Thus, I will now be researching here Medium-sized Corps, which I am defining as publicly-held US Corps which generated at least $2 bil in Total Core Pretax Income in the most recent 6 years, and which are not already included in the top 370 most profitable, very Big Corps.
I earlier addressed these Medium-sized Corps in the US Big Three States….New York, California and Texas.
This new research focuses on the 8 Midwest US States. Here’s a brief summary of my earlier research results for the most profitable, very Big Corps in these 8 Midwest States.
...........................Most Recent Twelve Years................Current
...................#....State&Local.......................Effective..Statutory
..................of......Corporate........Core......State&Local....State
..................Big.......Income.........Pretax......Tax Rate......Tax
...State......Corps....Tax Paid.......Income........Paid..........Rate
...............................(Millions of Dollars)
Illinois.......24.......10,960.........491,682........2.23%.......7.30%
Ohio...........17.........7,321.........321,950.......2.27%..........*
Minnesota..14.........8,555.........309,056.......2.77%.......9.80%
Michigan......7.........1,752.........106,479.......1.65%.......6.04%
Missouri.......8.........3,303.........101,428.......3.26%.......6.25%
Indiana.........6.........1,280.........100,120.......1.28%.......8.50%
Wisconsin.....5.........1,560...........48,731.......3.20%.......7.90%
Iowa.............2............438...........16,522.......2.65%......12.00%
Total...........83........35,169......1,495,968.......2.35%
* Ohio doesn’t have a State Income Tax, although it does have a form of a Gross Receipts Tax.
Below here is a State Summary of my new research for the Medium-sized Corps, with Core Pretax Income (PTI) above $2 bil for the most recent 6 years in these 8 US Midwest States.
..................................Most Recent Six Years
.......................# of......State&Local......(PTI).........Effective
.....................Medium...Corporate........Core......State&Local
........................Size........Income.........Pretax.......Tax Rate
....State..........Corps......Tax Paid.......Income.........Paid
.......................................(Millions of Dollars)
Ohio..................8............504...........20,135..........2.50%
Illinois..............7............308...........17,488..........1.76%
Missouri............6..............82...........15,868..........0.52%
Wisconsin..........5............465...........12,605..........3.69%
Minnesota..........3............361.............9,272..........3.89%
Indiana...............2...........273.............5,970..........4.57%
Michigan.............1.............20.............2,149..........0.93%
Iowa...................0
Total.................32.........2,013..........83,487..........2.41%
And below here are the individual 32 Medium-sized Corps in each of these 8 US Midwest States:
.......................................Most Recent Six Years
......................................State&Local....(PTI).........Effective
......................................Corporate........Core......State&Local
.......State.........................Income.........Pretax......Tax Rate
....Corporations...............Tax Paid.......Income........Paid
..........................................(Millions of Dollars)
Ohio
American Financial Group.....15............3,386..........0.44%
Abercrombie & Fitch...........138............3,002..........4.60%
Cintas....................................98............2,758..........3.55%
Cliffs Natural Resources.........17............2,429..........0.70%
Scripps Ntwks Interactive......83............2,361..........3.52%
Lubrizol.................................16............2,156**.......0.74%
J M Smucker..........................38............2,044..........1.86%
E W Scripps............................99............1,999**.......4.95%
OH Total for all 8...............504..........20,135..........2.50%
Illinois
CNA Financial.........................0............3,174..........0.00%
CF Industries........................79............2,752..........2.87%
CNH Global NV***..................0****.....2,726..........0.10%
Telephone & Data Systems...110............2,676..........4.11%
United States Cellular............61............2,085**........2.93%
Hospira.................................30............2,040..........1.47%
Pactiv....................................28............2,035..........1.38%
IL Total for all 7................308..........17,488...........1.76%
Missouri
Peabody Energy.......................2............3,302..........0.06%
Energizer Holdings.................36............2,641..........1.36%
MEMC Electronic Materials......5............2,638..........0.19%
Reinsurance Group of America.0............2,523..........0.00%
Sigma Aldrich.........................39............2,452..........1.59%
Amdocs, Ltd*****....................0****.....2,312..........0.00%
MO Total for all 6.................82...........15,868.........0.52%
Wisconsin
Wisconsin Energy..................238*..........3,014..........7.90%
Oshkosh..................................54............2,609**......2.07%
Manpower..............................35............2,438...........1.44%
Joy Global...............................50............2,431..........2.06%
Alliant Energy.........................88............2,113..........4.16%
WI Total for all 5.................465..........12,605..........3.69%
Minnesota
CHS.......................................123*...........3,935..........3.13%
C H Robinson Worldwide.......129............2,678..........4.82%
Hormel Foods.......................109............2,659..........4.10%
MN Total for all 3................361............9,272..........3.89%
Indiana
Mead Johnson Nutrition.......101............3,155..........3.20%
Steel Dynamics.....................172*...........2,815..........6.11%
IN Total for 2.....................273............5,970..........4.57%
Michigan
Autoliv...................................20............2,149..........0.93%
Iowa None
Total Midwest for all 32...2,013.........83,487..........2.41%
* Includes both Current State Income Tax Expense and Deferred State Income Tax Expense
** Exclusive of large Asset Impairments
*** CNH Global is a Netherlands Corp, but with both an SEC Business and Mailing Address in Burr Ridge, IL
**** No mention of State Income Tax Paid, therefore it was assumed none were paid
***** Amdocs, Ltd is an Islands of Guernsey Corp, has SEC listed Principal Executive Offices in Chesterfield, MO, and a New York City external CPA firm
With so many Houston, Texas Oil and Gas related companies generating such incredibly robust profits as compared to companies in the Midwest, it is pretty clear to me that nearly all businesses in the US Midwestern States have unfortunately been just devastated by sky-high energy costs.
I think a very wise New Year's Resolution to strengthen the US economy and to bring down markedly US unemployment and US underemployment in 2011 is to legitimately do everything in a US citizen's power to stop Houston Big Oil's hold on the US government, on US citizens, and on US businesses. The country's economy will not run on all cylinders, nor will the unemployment picture turn around, particularly for newly-minted college graduates and for the long-term unemployed, until the enormous transfer of wealth from US citizens and from US businesses to Houston Big Oil's bottom-line coffers is reversed. It's pretty clear that the US government, particularly the US Congress as a whole, is flat-out afraid of Houston Big Oil's awesome power. Thus, the people must rise up and do what's right, when the US government doesn't have the courage to do it. That's the patriotic thing to do, in these times of unprecedented, prolonged, deep economic turmoil.
