I am updating here my earlier updated post on California Very Big Corps to include all California-based companies, 40 in total, which have Total Core Consolidated Pretax Income of at least $5 bil each for the most recent 12 years, and which also have Total State Corporate Income Tax Loopholes Taken of at least $200 mil each, at least the way I measure them, in the most recent dozen years.
My definition of Core Pretax Income here excludes very large Asset Impairment Charges, particularly from Goodwill Impairment, and also excludes very large Acquired In Process Research and Development Charges.
Below are the effective state corporate income tax rates paid, which are computed by dividing the current state and local corporate income tax paid by the core consolidated pretax income, both in total for the past twelve years for each of these 40 Big California Corps. These 40 Big California Corps below had a weighted average state corporate effective income tax rate paid for the past twelve years of a modest 2.69%, or a 70% discount to California’s current state corporate income tax rate of 8.84%.
….……………………..........................Current……Core….........State
….……………………............................State..Consolidated..Effective
….……………………............................Tax……….Pretax…….Tax Rate
….……………………............................Paid……..Income……….Paid
….……………….…...........................(millions of dollars)
40. Edison Intl………….....................984……...14,112……..6.97%
39. Google (2002-2009)…………...1,685……..27,244……..6.18%
38. Charles Schwab…......................719……...12,329……..5.83%
37. PG&E………………........................960***…17,050……..5.63%
36. SAIC (1998-2008).....................452..........8,297........5.45%
35. Visa (2003-2009)......................531.......10,120........5.25%
34. Golden West Fincl (1998-2005).596……...11,552……..5.16%
33. Symantec………………………..........266……….5,642*……4.71%
32. First American………………….......237……….5,096……..4.65%
31. Ebay…………………………..............583………12,760*…..4.57%
30. Intuit………………………….............266………..5,996…….4.44%
29. Gilead Sciences….......................529……...12,268*…..4.31%
28. Genentech (1998-2008)…..........721……..17,372*……4.15%
27. GAP………………...........................701……..16,945……..4.14%
26. Safeway……………........................676……..16,536*…...4.09%
25. Sempra Energy…........................484……..12,209……..3.96%
24. Disney…………..........................1,864……..47,950……..3.89%
23. Clorox……………..........................297………..8,296……..3.58%
22. Allergan (1999-2009)……...........189………..5,367*…….3.52%
21. Oracle……….............................2,303….....65,612……...3.51%
20. Apple………..............................1,784……...51,465……..3.47%
19. Cisco Systems….......................2,582…......75,141*…...3.44%
18. Qualcomm……............................776…......25,105……..3.09%
17. Countrywide Fincl(1998-2007)..515…......18,595....….2.77%
16. Franklin Resources.....................390…......14,140……..2.76%
15. Wells Fargo…….........................2,461…...108,550……..2.27%
14. Maxim Integrated Products.........114..........5,442.......2.09%
13. Intel……………............................1,981…...101,986……..1.94%
12. Linear Technology......................104..........5,562.......1.87%
11. Amgen………................................728…….40,300*…….1.81%
10. Chevron…………........................3,057…...211,552……..1.45%
..9. Occidental Petroleum…...............731……..55,238……..1.32%
..8. Computer Sciences(1998-2006)....66……....5,423*……1.22%
..7. Adobe Systems..............................82……....6,741……..1.22%
..6. Applied Materials.........................164……..15,532…....1.06%
..5. Hewlett-Packard..........................642……..66,446……..0.97%
..4. McKesson…………...........................83……….9,448……..0.88%
..3. Mattel…….......................................52………6,529……..0.80%
..2. Unocal(1998-2004).......................46.........6,502........0.71%
..1. Seagate Technology(2001-2009)**..6........5,937*......0.10%
Total all 40………...........................31,407…1,168,387…….2.69%
* Excludes large Asset Impairment Charges, particularly Goodwill Impairment Charges, and/or Acquired In Process Research and Development Charges
** Seagate Technology is presently an Ireland Corp; previously a Cayman Islands Corp; for all years, its CPA firm was based in Silicon Valley, CA
*** Current State Income Paid or Payable for 2004-2009, and both Current and Deferred State Income Tax Expense in 1998-2003
For the most recent year, the weighted state corporate effective income tax rate paid by these Big California Corps was an even lower 2.36%.
The huge Northrop Grumman was not included above, even though it generated a massive $18.240 bil of core pretax income in the past twelve years. Northrop Grumman did not disclose the amounts of state income tax it paid. It passes on these costs to the US Government in its federal contracts.
Yahoo generated Total Pretax Income above $5 bil in the past 12 years. It was not included in the above list of Big Corps, since its Total State Corporate Income Tax Loopholes Taken were lower than $200 mil.
And then, below here is a summary of what I call a fair measure of the Total State Corporate Income Tax Loopholes Taken by each of these 40 Big California Corps for the past twelve years. In estimating what I think is a fair measurement of State Corporate Income Tax Loopholes Taken, for ease of computation, I started by multiplying the current California Corporate Income Tax Rate of 8.84% by the Total Core Consolidated Pretax Income of each Big California Corp for the last twelve years. Then, I subtracted the actual total State and Local Corporate Income Taxes Paid by each of these Corps for the same twelve years.
………………………..........................CA……...........……...Estimated
…………………………………….......Statutory……State……..State Tax
………………….........…..............Corporate…Effective....Loophole
………………….........…………..........Tax……..Tax Rate….....Taken
………………..........…………............Rate……....Paid…....Last 12 Years
…………………………………………………....................(millions of dollars)
..1. Chevron………….......………….8.84%.......1.45%........15,644
..2. Wells Fargo………….........……8.84%......2.27%..........7,135
..3. Intel……………...........……......8.84%......1.94%..........7,035
..4. Hewlett-Packard......………...8.84%.......0.97%.........5,232
..5. Oxy Petroleum……………......8.84%.......1.32%..........4,152
..6. Cisco Systems………..………...8.84%.......3.44%.........4,060
..7. Oracle……………….......……....8.84%.......3.51%..........3,497
..8. Amgen…........…………………..8.84%.......1.81%...........2,835
..9. Apple………………......………...8.84%.......3.47%..........2,766
10. Disney………………………….....8.84%.......3.89%..........2,375
11. Qualcomm…………........……..8.84%.......3.09%..........1,443
12. Applied Materials…....……….8.84%.......1.06%..........1,209
13. Countryside Financial……….8.84%.......2.77%..........1,129
14. Franklin Resources……………8.84%.......2.76%............860
15. Genentech…………………….....8.84%.......4.15%.............815
16. GAP………….......…………….....8.84%.......4.14%.............797
17. Safeway…………………………...8.84%.......4.09%.............786
18. McKesson…………….......……..8.84%......0.88%.............752
19. Google………………......………..8.84%.......6.18%.............723
20. Sempra Energy……………......8.84%.......3.96%.............595
21. Gilead Sciences………………….8.84%.......4.31%.............555
22. PG&E…………………………….....8.84%.......5.63%.............547
23. Ebay………………………………...8.84%.......4.57%.............545
24. Unocal.................................8.84%.......0.71%............529
25. Mattel…………......……………...8.84%.......0.80%.............525
26. Seagate Technology.............8.84%.......0.10%.............519
27. Adobe Systems…………....…..8.84%.......1.22%..............514
28. Clorox……………………………...8.84%.......3.58%.............436
29. Golden West Financial……….8.84%.......5.16%..............425
30. Computer Sciences..............8.84%........1.22%.............413
31. Linear Technology..............8.84%........1.87%.............388
32. Charles Schwab…………………8.84%........5.83%.............371
33. Maxim Integrated Products.8.84%........2.09%.............367
34. Visa.....................................8.84%........5.25%.............364
35. Allergan…………………...........8.84%........3.52%.............285
36. SAIC....................................8.84%........5.45%.............281
37. Intuit…………………….............8.84%........4.44%.............264
38. Edison Intl………………..........8.84%........6.97%.............264
39. Symantec………………….........8.84%........4.71%.............233
40. First American………………….8.84%........4.65%.............213
Total all 40………………………………………71,878 (yeah, $71.9 bil)
For the most recent six years, the estimated total State Corporate Income Tax Loopholes Taken was $52.7 bil, as compared to $71.9 bil for the past twelve years.
And then here’s an updated list of the 41 California Big Corps with Total Core Pretax Income of more than $5 bil for the most recent 12 years. This list is sorted by Pretax Income.
….……………………........................Current……..Core….........State
….……………………..........................State....Consolidated..Effective
….……………………..........................Tax………...Pretax…….Tax Rate
….……………………..........................Paid……....Income……….Paid
….……………….….........................(millions of dollars)
Chevron....................................3,057..........211,552.......1.45%
Wells Fargo................................2,461..........108,550......2.27%
Intel.......................................... 1,981..........101,986.......1.94%
Cisco Systems............................2,582............75,141.......3.44%
Hewlett-Packard...........................642............66,446.......0.97%
Oracle.......................................2,303............65,612.......3.51%
Occidental Petroleum...................731............55,238.......1.32%
Apple........................................1,784............51,465.......3.47%
Disney.......................................1,864............47,950.......3.89%
Amgen.........................................728............40,300.......1.81%
Google.......................................1,685............27,244.......6.18%
Qualcomm....................................776...........25,105.......3.09%
Countrywide Financial..................515............18,595.......2.77%
Genentech....................................721............17,372.......4.15% PG&E............................................960............17,050.......5.63%
GAP..............................................701............16,945.......4.14%
Safeway........................................676............16,536.......4.09%
Applied Materials..........................164............15,532.......1.06%
Franklin Resources.......................390............14,140.......2.76%
Edison International.....................984............14,112.......6.97%
Ebay.............................................583............12,760.......4.57%
Charles Schwab.............................719............12,329.......5.83%
Gilead Sciences.............................529............12,268.......4.31%
Sempra Energy.............................484............12,209.......3.96%
Golden West Financial..................596............11,552.......5.16%
Visa..............................................531............10,120.......5.25%
McKesson......................................83..............9,448.......0.88%
SAIC............................................452..............8,297.......5.45%
Clorox.........................................297..............8,296.......3.58%
Yahoo..........................................554..............7,130.......7.77%
Adobe Systems..............................82..............6,741.......1.22%
Mattel............................................52..............6,529.......0.80%
Unocal...........................................46..............6,502.......0.71%
Intuit...........................................266..............5,996.......4.44%
Seagate Technology.........................6..............5,937.......0.10%
Symantec.....................................266..............5,642.......4.71%
Linear Technology.......................104..............5,562.......1.87%
Maxim Integrated Products..........114..............5,442.......2.09%
Computer Sciences.........................66..............5,423.......1.22%
Allergan.......................................189..............5,367.......3.52%
First American.............................237..............5,096.......4.65%
CA Total for all 41 Corps.......31,961........1,175,517.......2.72%
And below here is a listing of the 15 California Mid-sized Corps with Total Core Pretax Income for the most recent 6 years of at least $2 bil each, but which had Total Core Pretax Income for the most recent 12 years of less than $5 bil, and thus weren’t included in the above list of the 41 most profitable Very Big California Corps.
..........................................Most Recent Six Years
.........................................State&Local....(PTI).........Effective
..........................................Corporate.......Core......State&Local
...........................................Income.........Pretax......Tax Rate
....Corporations..................Tax Paid.......Income........Paid
.............................................(Millions of Dollars)
DIRECTV................................200...........7,662.........2.61%
Western Digital...........................4...........4,027.........0.10%
DaVita.....................................161...........3,307.........4.87%
Agilent Technologies................83............3,102.........2.68%
Reliance Steel & Aluminum.....122...........2,808.........4.34%
Ross Stores...............................92...........2,644.........3.48%
Juniper Networks.....................90...........2,644.........3.40%
Xilinx........................................24...........2,638.........0.91%
Jacobs Engineering.................109...........2,637.........4.13%
National Semiconductor...........43...........2,470.........1.74%
Lam Research...........................12...........2,428.........0.49%
Varian Medical Systems............72..........2,404.........3.00%
KLA Tencor..............................37...........2,333.........1.59%
Altera.......................................27...........2,112.........1.28%
Robert Half Intl.......................141...........2,069.........6.81%
CA Total for all 16 Corps.....1,217.........45,285.........2.69%
Now let me take it to the next level of Mid-sized California publicly-held Corps. Below are the 15 California Corps with Total Core Pretax Income for the most recent 6 years of between $1.5 and $2.0 bil, and which were not already included in the above 41 Very Big California Corps.
...........................................................................................Core
..........................................................................................Pretax
California Corp(Industry)...........................Headquarters..Income
.....................................................................................(mils of $s)
Ingram Micro(Wholesaler Computer Products)..Santa Ana..1,947*
Autodesk(Computer Software)...........................San Rafael..1,939*
Avery Dennison(Paper Products)........................Pasadena..1,855*
NetApp(Computer Storage Devices)...................Sunnyvale..1,824
Broadcom(Semiconductors)....................................Irvine..1,792*
Nvidia(Semiconductors)...................................Santa Clara..1,734
CB Richard Ellis Group(Real Estate).................Los Angeles..1,715*
Health Net(Medical Service Plans)..............Woodland Hills..1,684*
Levi Strauss(Apparel)...................................San Francisco..1,658
City National(Banking)...................................Beverly Hills..1,650
Watson(Pharmaceuticals).......................................Corona..1,629*
SanDisk(Computer Storage Devices)......................Milpitas..1,616*
CareFusion(Medical Instruments & Apparatus)...San Diego..1,562
URS(Engineering Services)...........................San Francisco..1,561
Dolby Labs(Communications Equipment).....San Francisco..1,551
* Excludes large Asset Impairment Charges and/or Acquired In Process Research and Development Charges
When you review the above three lists of the 71 Big and Mid-sized California Corps, with only a couple of exceptions, you have to be very impressed with the quality and fine financial performance.
But this very strong financial performance is but a drop in the bucket in comparison to what has been going on with US Big Oil and Gas Corps. There has been a massive income shift in the past decade from non-Big Oil and Gas Corps to Big Oil and Gas Corps, which has been devastating to all non-Big Oil and Gas businesses.
To illustrate how this massive income shift in the past decade has applied to California, there were 30 California non-Big Oil and Gas Big Corps which were in existence for the entire past 12 years. The Total Core Pretax Income for these 30 California non-Big Oil and Gas Big Corps of $200.1 bil for the most recent two years increased 105% from the $97.4 bil earned a decade earlier, which was a much higher percentage increase than that for nearly any other US State.
On the other hand, the 35 US Oil and Gas Big Corps, 25 of which are based in Texas, generated Core Pretax Earnings of $373.7 bil for the most recent two years, which was an incredible 712% increase from the $46.0 bil earned a decade earlier. I'm not kidding!
Clearly, it would be wise for the US government to take action that would reverse this horrible income shift trend, which has severely damaged not just more than 95% of US businesses, but has also devastated US individuals, and all of federal, state and local governments. Not only has it resulted in much higher US unemployment, much higher US underemployment, and lower median US wages, but it also has resulted in a substantially higher portion of a family's take-home pay being used to pay for energy costs than that of a decade ago.
I think it only makes sense for the US government to eliminate the many massive tax loopholes that are granted to Big Oil and Gas Corps to reward them for generating these windfall profits. And the money raised here should be given as wise, lucrative tax incentives to all US businesses that effectively reduce their energy costs.
Such a tax plan, is a ten-fer:
.....higher US real GDP growth
.....lower US unemployment
.....lower US underemployment
.....higher US median wages
.....lower portion of take-home pay needed to fund energy costs
.....higher after-tax corporate profits for more than 95% of US businesses
.....significant reduction in the US deficit
.....better State government coffers
.....more competitive US firms
.....and a huge step toward US becoming energy independent
Now on to updating New York and the rest of the Eastern Half of the US.
