Virginia Big Corps 2010 Profit Improvement "Off-the-Charts"

Here's how Virginia's 24 largest Corps did as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their most recent SEC annual report filings:

Virginia 24 Largest Publicly-Held Corps Most Recent Annual Pretax Earnings (PTI)

...................................................................................Increase....
.........................................FYE......PTI(L).....PTI(L)...(Decrease)...
Virginia Big Corp..............2010.....2010........2009...Amount....%..
.......................................................(millions of dollars)......

All 23 VA Big Corps But Freddie Mac:
Altria Group…………...........Dec…...5,723.......4,877......846.....17%
Capital One Financial.........Dec…...4,330.......1,336..2,994..224%
General Dynamics……........Dec…...3,790.......3,513......277......8%
Dominion Resources(1).....Dec…...2,570.......1,874......696.....37%
Norfolk Southern………......Dec…...2,367.......1,622......745.....46%
AES(2)…………………...........Dec…...2,286.......2,019......267.....13%
SLM(3)…………………..........Dec…...1,433..........272.....1,161..427%
Computer Sciences…........Mar…...1,038.........957..........81.......8%
Gannett………………….........Dec…......846.........570.......276......48%
SAIC……………………..........Jan….......799.........703.........96......14%
Dollar Tree…………….......Jan 11.......630.........508........122......24%
NII Holdings………….........Dec…......598..........586..........12.......2%
Advance Auto Parts…......Dec…......557.........432.........125.....29%
Carmax………………...........Feb…......452...........97.........355...366%
Amerigroup……………......Dec…......437.........201..........236...117%
NVR……………………..........Dec…......322.........298...........24.......8%
MeadWestvaco(4)……......Dec…......316...........17.........299..1759%
Smithfield Foods(5)…......Apr…......314.......(216).........530...245%
Markel Corp………….........Dec…......296.........199............97.....49%
Universal Corp………........Mar….....257.........197...........60.....30%
Mantech Intl……………......Dec….....202.........179...........23......13%
Genworth Financial….......Dec…......76........(792)........868...110%
Massey Energy……...........Dec…....(234)........137.......(371).(271)%

Total 23 VA Big Corps...............29,405....19,586......9,819....50%

Freddie Mac………….....Dec….(14,882)..(22,384)....7,502....34%
Total of 24 VA Big Corps...........14,523.....(2,798)...17,321..619%

(1) Dominion Resources 2010 PTI excludes huge Gain on Asset Sale
(2) AES 2010 PTI excludes large Asset Impairment Charge and 2009 PTI excludes both Tax Credit Settlement and Gain on Liability Extinguishment.
(3) SLM 2010 PTI excludes Intangible Asset Impairment Charge and both years exclude Gain on Debt Repurchases.
(4) MeadWestvaco 2009 PTI excludes large Alternative Fuel Tax Credit.
(5) Smithfield Foods numbers are for the 6 Months Ended October.

It seems almost unbelievable, but yeah, Virginia's 24 Big Corps Total Pretax Earnings in 2010 increased by a massive $17.3 bil, or by 619%, over 2009. Excluding Freddie Mac, the 23 other Virginia Big Corps had Total Pretax Earnings in 2010 increase by $9.8 bil, or by 50%, over 2009.

And just look how consistent those earnings increases were in 2010. Every company had earnings increases, and many very robust earnings increases, except for Massey Energy.

And yet about half of the country still thinks that the Obama Administration is not helping the US economy. These incredibly strong most recent Virginia earnings numbers in 2010 are telling the same story that the stock market has been saying for the past two years….that the Obama Administration has really helped the US economy.

Earnings drive stock prices. And when you combine these extremely strong most recent Virginia Big Corp earnings, with the superb earnings increases for 2010 that I discovered in all the US States I have studied so far...in Wisconsin, in Indiana, in Ohio, in Michigan, in North Carolina, in Minnesota, and in Florida..., I think it tells you that even though the stock market has almost doubled in the past two years, it is going much higher, assuming the US government can effectively and fairly deal with Big Oil windfall profits.

Pundits are very quick to criticize how the Obama Administration has handled Freddie Mac and Fannie Mae. But when you review the objective GAAP Pretax Losses, there has been just incredible paring of these massive losses, since the Obama Administration took over and was handed this just horrible housing and financial crisis.

Here's McLean, VA-based Freddie Mac's GAAP Pretax Losses for the most recent three years:

.....2008.....$44.6 bil
.....2009.....$22.4 bil
.....2010.....$14.9 bil

And here's Washington DC-based Fannie Mae's GAAP Pretax Losses for the most recent two years:

.....2009.....$73.0 bil
.....2010.....$14.1 bil

The one negative with all of the exceptionally strong Virginia Big Corp earnings numbers in 2010 is that it just shows that all of the Boats haven't risen yet. The Beltway-based Virginia Big Boats have clearly risen, as have the Big Oil Yachts. However, there are still many Canoes still way under water, all over the country.

The above research, where I found 24 Virginia Big Corps, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 1 additional Virginia Big Corp, which is shown here below.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Addition

Strayer Education VA.......217............174............43......25%

Florida Big Corp Profits On Fire in 2010

With the horrible jobless recovery, coupled with the devastating housing crisis, Florida financial coffers are severely suffering, as are many State citizens in Florida.

However, I think it would be wise to get an update on how Florida Big Corps have fared very recently, so we can better assess where Florida Big Corps stand now financially, as compared with the present financial status of Florida citizens. By doing this, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between Florda Big Corps and Florida citizens. And frankly, Big Corps outside of Florida, including foreign-owned Big Corps, that do business in Florida, should also be included in this mix of a fair sharing of this very expensive financial burden to balance Florida's State Budget.

Let me show you below just how Florida’s 30 largest Corps did as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their most recent SEC annual report filings:

Florida 30 Largest Publicly-Held Corps Most Recent Annual Pretax Earnings (PTI)

.........................................FYE.......PTI........PTI..........Increase...
Florida Big Corp...............2010....2010......2009.......Amount...%..
.......................................................(millions of dollars)......

CSX………………………..........Dec…...2,546.....1,746.........800.....46%
Nextera Energy………….....Dec…....2,489.....1,942.........547.....28%
Carnival…………………........Nov…...1,978.....1,806.........172.....10%
Publix Super Markets…...Sep(1)....1,522.....1,338.........184......14%
Harris Corp(2)……………....Jun…......840........741...........99......13%
Fidelity Natl Info Svcs…...Dec…......616.........164.........452...276%
Walter Energy……………....Dec…......578.........184.........394...214%
Fidelity Natl Fincl………....Dec…......562.........345.........217....63%
Royal Caribbean………......Dec…......547.........162.........385...238%
Darden Restaurants……...May…......544.........513...........31.......6%
Lender Processing Svcs...Dec…......488.........449...........39.......9%
Roper Industries……….....Dec…......448.........340.........108...164%
TECO Energy…………........Dec…......410..........313...........97.....31%
Autonation……………….....Dec…......381..........349...........32.......9%
Raymond James Fincl.....Sep…......356..........236..........120.....51%
Tupperware Brands…......Dec…......300..........237..........63.....27%
Health Mgt Associates.....Dec…......287..........244..........43.....18%
Brown & Brown……….......Dec…......266..........255...........11.......4%
Jabil Circuit(3)…………....Aug…......247............18........229..1272%
Tech Data………………......Jan….......235..........178...........57.....32%
BE Aerospace…………......Dec…......211...........205............6........3%
Ryder System………........Dec…......186...........144...........42.....29%
Chico's FAS………….......Jan 11......179...........110............69.....63%
World Fuel Services…....Dec…......178..........150............28.....19%
HSN…………………….........Dec…......164...........121...........43.....36%
Watsco………………..........Dec…......162............78...........84....108%
Landstar System……......Dec…......136...........110...........26.....24%
PSS World Medical….....Mar…......110.............84...........26.....31%
Lennar………………….......Nov….......95........(760).........855....113%
Office Depot………….......Dec…......(57).........(311).........254.....82%

Total of 30 FL Big Corps..........17,004......11,491......5,513....48%

(1) Publix Super Markets numbers are for the 9 months ended September 2010 and 2009.
(2) Harris Corp 2009 PTI excludes large Asset Impairment Charges.
(3) Jabil Circuit 2009 PTI excludes large Goodwill Impairment Charges.

Yeah, that's right, all 30 Florida Big Corps had earnings increases in the most recent year, and the total earnings increase of these 30 largest Florida Corps was $5.5 bil, or up a very robust 48%.

And yet about half of the country still thinks that the Obama Administration is not helping the US economy. These incredibly strong most recent Florida earnings numbers in 2010 are telling the same story that the stock market has been saying for the past two years….that the Obama Administration has really helped the US economy.

Earnings drive stock prices. And when you combine these extremely strong most recent Florida Big Corp earnings, with the superb earnings increases for 2010 that I discovered in all the US States I have studied so far...in Wisconsin, in Indiana, in Ohio, in Michigan, in North Carolina, and in Minnesota..., I think it tells you that even though the stock market has almost doubled in the past two years, it is going much higher, assuming the US government can effectively and fairly deal with Big Oil windfall profits.

I think Florida State Governor Rick Scott's proposal to reduce the Florida State Corporate income tax rate lacks intellectual merit. When all large Florida Corps can increase their earnings presently, and do so robustly, without a Corporate State Income Tax rate cut, why do it? I think the key to balancing Florida's State Budget lies in doing a better job of collecting State Corporate Income Taxes from Florida Big Corps, and from out-of-State Big Corps, as well as closing many of the huge State Corporate Income Tax Loopholes that Florida Big Corps, and out-of-State Big Corps, presently take wide advantage of.

The above research, where I found 30 Florida Big Corps, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 4 additional Florida Big Corps, which are shown here below.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions

Florida (3)
Citrix Systems.....................334............194...........140.....72%
BankUnited.........................313.............199...........114.....57%
MedNax(2)..........................311.............288............23......8%
Rayonier(1)........................233.............154.............79.....51%

(1) Rayonier is an REIT. Also, its 2009 PTI excludes Alternative Fuel Tax Credits.
(2) MedNax, was found in July 2011, thus its earnings numbers weren't included in the totals for 2010.

Minnesota Big Corps Report Robust Profits in 2010

With the jobless recovery, Minnesota financial coffers are suffering, as are some of its State citizens.

However, I think it would be wise to get an update of how Minnesota Big Corps have fared very recently, so we can better assess where Minnesota Big Corps stand now financially, as compared with the present financial status of Minnesota citizens. By doing this, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between Minnesota Big Corps and Minnesota citizens. And frankly, Big Corps outside of Minnesota, including foreign-owned Big Corps, that do business in Minnesota, should also be included in this mix of a fair sharing of this very expensive financial burden to balance Minnesota's State Budget.

Let me show you below just how Minnesota’s 26 largest Corps did as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their most recent SEC annual report filings:

Minnesota 26 Largest Publicly-Held Corps Most Recent Annual Pretax Earnings (PTI)

....................................................................................Increase.....
.........................................FYE......PTI...........PTI.......(Decrease)..
Minnesota Big Corp..........2010....2010......2009.......Amount...%..
.......................................................(millions of dollars)......

UnitedHealth Group....Dec….7,383.....5,808......1,575...27%
3M………………….................Dec…..5,755......4,632.......1,123....24%
Target……………................Jan 11…4,495......3,872.........623....16%
Travelers…………................Dec…..4,306......4,711.......(405)...(9)%
US Bancorp………...............Dec…..4,200......2,632......1,568...60%
Medtronic(1)………............Apr…..3,969.......3,061........908....30%
General Mills……...............May….2,205.......1,942.........263....14%
Best Buy………….................Feb…..2,195.......1,700........495....29%
St. Jude Medical….............Dec…..1,209.......1,057.........152....14%
Xcel Energy…….................Dec…..1,189.......1,057.........132....12%
Mosaic(2)………...............Nov(2)..1,026.........304.........722..238%
Ecolab…………….................Dec…....748.........620..........128...164%
Supervalu(3)……................Feb…....632.........745........(113)..(15)%
Hormel Foods….................Oct…....625.........528...........97....18%
CH Robinson WW...............Dec…....624.........587...........37.....6%
CHS………………...................Aug…....584........504...........80....16%
Alliant Techsystems(4)......Mar…....435........407...........28.....7%
Fastenal…………..................Dec…....431........297..........134....45%
Ameriprise Financial*.......Dec…....365........331............34.....10%
Patterson………..................Apr…....339........320............19......6%
Valspar…………...................Oct…....319........238............81.....34%
Pentair…………....................Dec…...300........173..........127....73%
TCF Financial…..................Dec…....238........133..........105.....79%
Deluxe…………....................Dec…....236........155............81.....52%
Donaldson……….................Jul….....230........161............69.....43%
Polaris Industries..............Dec…....219.........151............68.....45%

Total of 26 MN Big Corps...........44,257...36,126........8,131....23%

(1) Medtronic 2009 PTI excludes large In Process R&D Charge.
(2) Mosaic numbers are just for the 6 Months ended November 2010. Also, it's 2010 PTI excludes large Gain of Sale of Equity Investment.
(3) Supervalu 2009 PTI excludes large Intangible Asset Impairment Charge.
(4) Alliant Techsystems 2009 PTI excludes Intangible Asset Impairment Charge.

When I review the above chart, what comes to my top of mind is Minnesota Big Corp incredibly consistent earnings growth. Minnesota should be very proud of the high quality of its Big Corps.

The above research, where I found 26 Minnesota Big Corps, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 1 additional Minnesota Big Corp, which is shown here below.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
......................................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Addition

Land O'Lakes..................189.............232...........(43)....(19)%

Land O'Lakes is a farm co-operative.

===================================
Very late change

* Ameriprise Financial above PTI numbers are incorrect. Here are the corrected PTI numbers:

................................................2010.......2009.........Increase
.................................................Core........Core........(Decrease)
................................................PTI(L)......PTI(L).....Amount.....%
.................................................(millions of dollars)....

Ameriprise Financial.....Dec….1,594........920...........674.....73%

North Carolina Big Corp Profits Grow Sharply in 2010

With the jobless recovery, North Carolina State financial coffers are suffering severely, as are many State citizens.

However, I think it would be wise to get an update of how North Carolina Big Corps have fared very recently, so we can better assess where North Carolina Big Corps stand now financially, as compared with the present financial status of North Carolina citizens. By doing this, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between North Carolina Big Corps and North Carolina citizens. And frankly, Big Corps outside of North Carolina, including foreign-owned Big Corps, that do business in North Carolina, should also be included in this mix of a fair sharing of this very expensive financial burden to balance North Carolina’s State Budget.

Let me show you below just how North Carolina’s 17 largest Corps did as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their SEC annual report filings:

North Carolina 17 Largest Publicly-Held Corps Most Recent Annual Pretax Earnings (PTI)

....................................................................................Increase.....
.........................................FYE......PTI........PTI(L).....(Decrease)...
North Carolina Big Corp...2010....2010......2009.......Amount...%..
.......................................................(millions of dollars)......

Bank of America(1)...........Dec....11,077.....4,360......6,717..154%
Lowe's............................Jan 11....3,228......2,825........403....14%
Duke Energy(2)................Dec......2,936......2,251.........685....30%
Reynolds American(3).....Dec......2,192......2,101...........91......4%
Lorillard..........................Dec......1,635......1,519..........116......8%
Progress Energy...............Dec......1,406......1,237.........169....14%
BB&T................................Dec........969......1,036.........(67)....(6)%
VF Corp(4).......................Dec........952........777.........175....23%
Lab Corp of America.........Dec........916........885...........31.......4%
Goodrich..........................Dec........805........784...........21.......3%
Family Dollar Stores.........Aug........564........451.........113.....25%
Nucor...............................Dec........267.......(414)........681..164%
SPX(5)..............................Dec........245........291.........(46)....(16)%
Hanesbrands....................Dec........234..........58.........176...303%
Piedmont Natural Gas......Oct.........234........205..........29......14%
Carlisle.............................Dec........188........203.........(15).....(7)%
Ruddick............................Sep........178........139..........39.....28%

Total of 17 NC Big Corps............28,026...18,708.....9,318....50%

(1) Bank of America 2010 PTI excludes large Goodwill Impairment Charge.
(2) Duke Energy PTI in both years exclude large Intangible Asset Impairment Charges.
(3) Reynolds America 2009 PTI excludes large Intangible Asset Impairment Charge.
(4) VF Corp PTI in both years exclude large Intangible Asset Impairment Charges.
(5) SPX PTI in 2009 excludes large Intangible Asset Impairment Charge.

Yeah, that's correct....these 17 Largest Publicly-Held North Carolina Corps had their Total Pretax Earnings for their most recent fiscal year 2010 increase sharply by $9.3 bil over 2009, or up a very robust 50%.

And about half of the country still thinks that the Obama Administration is not helping the US economy. These strong 2010 North Carolina earnings numbers are telling the same story that the stock market is telling….that the Obama Administration has really helped the US economy.

I think it's high time for Big Corps to start giving back to the country and hiring employees, and for State Governors and State legislators across the country to start working on real job creating stimulative initiatives, rather than continually going off target by working on issues not nearly as important.

The above research, where I found 17 North Carolina Big Corps, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 3 additional North Carolina Big Corps, which are shown here below.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions

North Carolina (3)
Babcock & Wilcox................236.............232.............4........2%
Cree....................................205...............40...........165....413%
Triad Guaranty...................102.............(612)..........714....117%

Michigan Big Corp Miraculous Profit Recovery in 2010

With the jobless recovery, Michigan State financial coffers are suffering severely, as are many State citizens. And certainly, Michigan’s auto industry was just decimated by the Great Recession.

However, I think it would be wise to get an update of how Michigan Big Corps have fared very recently, so we can better assess where Michigan Big Corps stand now financially, as compared with the present financial status of Michigan citizens. By doing this, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between Michigan Big Corps and Michigan citizens. And frankly, Big Corps outside of Michigan, including foreign-owned Big Corps, that do business in Michigan, should also be included in this mix of a fair sharing of this very expensive financial burden to balance Michigan’s State Budget.

Let me show you below just how Michigan’s 16 largest Corps did as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their SEC annual report filings:

Michigan 16 Largest Publicly-Held Corps Most Recent Annual Pretax Earnings (PTI)

......................................FYE.....PTI........PTI(L).........Increase....
Michigan Big Corp.........2010...2010......2009......Amount....%..
......................................................(millions of dollars)......

Michigan's Big 2 Auto Corps
Ford(A)..........................Dec....8,002......(2,115)....10,117...478%
General Motors(B)..........Dec....5,737....(25,659)...31,396...122%
Total MI Big 2 Auto Corps.......13,739...(27,774)...41,513....149%

Michigan's 6 Auto-Related Big Corps
Ally Financial..................Dec....1,179.....(6,959).....8,138....117%
TRW Automotive.............Dec....1,041.........140.........901...644%
BorgWarner.....................Dec......478............18........460.2,556%
Lear(C).............................Dec......449........(262)........711....271%
American Axle.................Dec......119........(297)........416....140%
Visteon(D).......................Dec......109........(256)........365....143%
Total MI 6 Auto-Related Corps..3,375.....(7,616)...10,991...144%

Michigan's 2 Big Utility Corps
DTE Energy......................Dec.......950..........782.......168......21%
CMS Energy......................Dec......590...........335.......255......76%
Total MI 2 Big Utility Corps........1,540........1,117.......423......38%

Michigan's 6 Other Big Corps
Dow Chemical.................Dec......2,802.........469....2,333....497%
Kellogg...........................Dec......1,742.......1,684.........58.........3%
Stryker...........................Dec......1,730.......1,624.......106.........7%
Whirlpool.......................Dec.........586.........294........292......99%
Perrigo...........................Jun.........308.........204........104.......51%
PulteGroup(E)................Dec.......(579).....(1,412).......833.....113%
Total MI 6 Other Big Corps..........6,589......2,863.....3,726...130%

Total all 16 MI Big Corps........25,243...(31,410)...56,653...180%

(A) Ford Pretax Income(Loss) excludes large Loss on Debt Extinguishment in 2010 and also excludes huge Gain on Debt Extinguishment in 2009.
(B) General Motors Pretax Loss in 2009 excludes gigantic Reorganization Gain.
(C) Lear Pretax Loss in 2009 excludes both Reorganization Gain and Goodwill Impairment Charge.
(D) Visteon PTI(L) excludes Reorganization Gain in 2010 and also excludes Asset Impairment Charge in 2009.
(E) PulteGroup Pretax Losses exclude Goodwill Impairment Charge in both years.

When you go from a Pretax Loss of $31.4 bil to a Pretax Profit of $25.2 bil in only a span of one year, now that is what I call just an incredible profit turnaround for Big Corps in the State of Michigan.

Just look at the top half of the above schedule...the 8 Michigan Auto and Auto-Related Big Corps...and the just incredible numbers and earnings growth shown in Bold on the right side of it. The Detroit Area is now still suffering economically, but just think what the Detroit Area would be like now economically if the Obama Administration hadn't wisely taken this action.

The country should be very proud of the Obama Administration's Economic Team for its leadership and creativity in facilitating this exceptional, almost unbelievable, accomplishment, which revived the US Auto Industry from the ashes to its current robust status, where it is playing a key role in the substantial elevation of the entire US economy.

And this incredible accomplishment occurred without costing the US taxpayer a dime.

The above research, where I found 16 Michigan Big Corps, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 3 additional Michigan Big Corps, which are shown here below.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions

Michigan (3)
Credit Acceptance...............253.............229............24.....10%
Gentex................................203...............96...........107....111%
Chrysler(1).........................(513)........(8,325).......7,812.....94%

(1) Chrysler 2009 PTL excludes the following items:
.....Gain on NSC settlement
.....Gain on Daimler pension settlement
.....Restructuring income
.....Intangible asset impairment
.....Reorganization expenses-net

Ohio Big Corp Profits Soar in 2010

Ohio Governor John Kasich and the Republican-controlled Ohio State Legislature want to roll back the collective bargaining rights of State public employees, including teachers.

With the jobless recovery, Ohio State financial coffers are suffering severely, as are many State citizens. And certainly, many companies, particularly small businesses, were decimated by the Great Recession.

However, I think it would be wise to get an update of how Ohio Big Corps have fared very recently, so we can better assess where Ohio Big Corps stand now financially, as compared with the present financial status of Ohio citizens. By doing this, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between Ohio Big Corps and Ohio citizens. And frankly, Big Corps outside of Ohio, including foreign-owned Big Corps, that do business in Ohio, should also be included in this mix of a fair sharing of this very expensive financial burden to balance Ohio's State Budget.

The first schedule below shows how Ohio’s 22 largest publicly-held, Non-Utility Corps, which had a Fiscal Year End (FYE) of either December 2010 or January 2011, have very recently performed on an operating basis. The information here was disclosed in either the Ohio companies’ most recent annual reports in their SEC filings or in their most recent annual earnings releases.

Ohio 22 Largest Publicly-Held Corps, with FYEs of either December 2010 or January 2011, Most Recent Annual Pretax Earnings (PTI)

...................................................................................Increase
..............................................FYE.....PTI......PTI.......(Decrease)
Ohio Big Corp…….................2010...2010....2009....Amount....%..
..........................................................(millions of dollars)

Ohio's 3 Big Banks
Fifth Third Bancorp...............Dec......940......(991)A..1,931...195%
KeyCorp................................Dec......793...(2,298)....3,091...135%
Huntington Bancshares.........Dec......352....(1,071)B..1,423...133%
Total OH 3 Big Banks.......................2,085...(4,360)...6,445..148%

Ohio's 4 Big Retailers (C)
Macy's..................................Jan....1,320........507.......813...160%
Limited Brands.....................Jan....1,103........641........462....72%
Sherwin Williams..................Dec......678........623.........55.......9%
Abercrombie & Fitch............Jan.......229........120.......109.....91%
Total OH 4 Big Retailers..................3,330.....1,891....1,439....76%

Ohio's 7 Big Manufacturers
Eaton...................................Dec....1,036........303.......733...242%
Lubrizol...............................Dec....1,004........726.......278.....38%
Owens Illinois......................Dec........424........215.......209.....97%
Timken................................Dec........406........(94)......500...532%
Dana Holding.......................Dec..........35......(298)D....333...112%
Goodyear Tire......................Dec...........8.......(357)......365...102%
NewPage Holding.................Dec......(485)D....(681)E....196...112%
Total OH 7 Big Manufacturers........2,428......(186)..2,614..1,405%

Ohio's 4 Big Insurance Cos
Progressive Corp.................Dec.....1,565.....1,557..........8.......1%
Nationwide(F).....................Dec........959........716......243.....34%
American Fincl Group.........Dec........689........812.....(123)...(15)%
Cincinnati Financial.............Dec........501........582......(81)....(14)%
Total OH 4 Big Insurance Cos..........3,714.....3,667.......47........1%

Ohio's Other 4 Big Corps
Cliff's Natural Resources......Dec.....1,298.........291....1,007...346%
Scripps Networks Interactives.Dec...740........520.......220.....42%
Teradata..............................Dec.......414.........334.........80.....24%
EW Scripps..........................Dec.........30........(231)......261...113%
Total OH 4 Other Big Corps............2,482.........914....1,568...172%

Total all OH 22 Big Corps............14,039.......1,926...12,113..629%

(A) Fifth Third Bancorp 2009 PTI excludes large one-time Gain of Sale of Processing Business.
(B) Huntington Bancshares 2009 PTI excludes large Goodwill Impairment Charge.
(C) Kroger is excluded since it hasn't released its FYE January 2011 earnings yet.
(D) Dana Holding 2009 PTI and NewPage Holding 2010 PTI exclude large Asset Impairment Charges.
(E) NewPage Holding 2009 PTI excludes large Refundable Excise Tax Credit.
(F) Nationwide is a Mutual Company and the numbers above are Net Income.

Yeah, that's correct....these 22 Largest Ohio HQed Corps, with FYEs in either December 2010 or in January 2011, had their Total Pretax Earnings for their most recent fiscal year increase by a staggering 629% over the preceding year, going from $1,926 million to $14,039 million.

And about half of the country still thinks that the Obama Administration is not helping the US economy. These incredibly strong most recent Ohio earnings numbers are telling the same story that the stock market has been saying for the past two years….that the Obama Administration has really helped the US economy.

Earnings drive stock prices. And when you combine these extremely strong most recent Ohio Big Corp earnings, with both Wisconsin Big Corp superlative earnings, and with Indiana Big Corp superb earnings, I think it tells you that even though the stock market has almost doubled in the past two years, it is going much higher, assuming the US government can effectively and fairly deal with Big Oil windfall profits.

And here are the most recent annual December 2010 Pretax Earnings numbers for Ohio's two Big Utility Corps:

............................................FYE.......PTI........PTI.......Increase
Ohio Big Corp……................2010....2010.......2009..Amount....%..
.........................................................(millions of dollars)

American Electric Power(1).Dec.....2,208.......1,915....293......15%
FirstEnergy..........................Dec.....1,626(2)..1,235....391......32%
Total OH 2 Big Utility Corps.............3,834......3,150....684.....22%

(1) American Electric Power's earnings above are its Ongoing Pretax Earnings.
(2) FirstEnergy's 2010 PTI excludes a large Asset Impairment Charge.

And lastly, here are the most recent 2010 annual Pretax Earnings numbers for all Ohio Big Corps that do not have either a December or a January FYE:

...................................................................................Increase
........................................FYE.......PTI..........PTI.......(Decrease)
Ohio Big Corp……............2010.....2010........2009....Amount....%..
.....................................................(millions of dollars)

Ohio's Dominant Big Corp
Procter & Gamble............Jun.....15,047.....14,413.......634.....4%
Ohio's Not-So-Dominant Big Corps
Cardinal Health...............Jun.......1,212........1,160.........52.....4%
Parker Hannifin...............Jun.........755..........683.........72....11%
JM Smucker....................Apr.........731..........396........335....85%
Cintas..............................May........344..........362........(18)...(5)%
Scott's Miracle-Grow........Sep.........338..........241.........97....40%
RPM International...........May........268..........181.........87....48%
Greif..................................Oct.........252.........138........114....83%
Total OH 7 Other Big Corps..........3,900.......3,161.......739....23%

I knew Big Corps were recently doing well, but I had no idea just how incredibly well, until I put together the above three earnings schedules, particularly the nearly real-time first one.

I think it's high time for Big Corps to start giving back to the country and hiring employees. I also think it's high time for all State Governors and State legislators to start working on real job creating stimulative initiatives, rather than going off target on things like attempting to roll back the collective bargaining rights of State public employees, including Educators. And the State Governors and the State Legislatures should intensely focus on serving all of the citizens of their States, not just their big business constituents.

The above research was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 5 additional Ohio Big Corps, which are shown here below.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions

Ohio (5)
Kroger(1)..........................1,734.........1,702............32.......2%
Big Lots...............................355............323............32.....10%
Mettler Toledo....................308............225............83.....37%
TransDigm...........................251............251.............0.......0%
Nordson(2)..........................231............116...........115.....99%

(1) Kroger 2009 PTI excludes Goodwill Impairment charge.
(2) Nordson 2009 PTI excludes Asset Impairment charges.

Indiana Large Corp Profits Really Rock in 2010, While Legislators React by Attempting to Roll Indiana Workers

The Indiana Republican-controlled Legislature wants to punish Indiana’s private sector workers by passing Right-to-Work Legislation. Even Indiana Governor Mitch Daniels wisely states that this isn’t the right time for this legislation.

And the Indiana Republican-controlled Legislature also wants to reduce the Corporate Income Tax Rate in Indiana, a Tax Rate that has a Sticker Tax Rate of 8.50%. But the overall actual effective State Corporate Income Tax Rate Paid by Indiana’s Big Corps for the past 12 years was a meager 1.28%, an 85% discount to the 8.50% State Sticker Tax Rate, and by far the lowest effective corporate state income tax rate paid of the 18 largest US States.

Well, I think it would be wise to see just how Indiana Big Publicly-Held Corps’ earnings came out in 2010.

Let me show you below just how Indiana’s 15 largest Corps did as disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their SEC annual report filings:

Indiana Publicly-Held Large Corps Most Recent Annual Pretax Earnings (PTI)

......................................FYE......PTI.......PTI...Increase(Decrease)
Indiana Big Corp……......2010...2010.....2009......Amount........%..
....................................................(millions of dollars).....

The Dominant 2:
Eli Lilly...........................Dec.....6,525....5,358......1,167.........22%
WellPoint........................Dec.....4,354….3,611(1)....743..........21%
Total of Dominant 2…….…….....10,879….8,969…...1,910……....21%

The 10 Other Large Corps:
Cummins.........................Dec....1,617.......640........977........153%
Zimmer Holdings(2)........Dec....1,064....1,071..........(7)..........(1)%
Simon Property Group(3)Dec......754.......387........367...........95%
Mead Johnson Nutrition..Dec......634.......587..........47.............8%
ITT Educational Services.Dec......614.......491.........123...........25%
CNO Financial Group….....Dec......294.......174........120...........69%
Steel Dynamics................Dec.......213.......(18)........231......1,283%
Hill-Rom Holdings...........Sep.......183.........94..........89...........95%
Duke Realty(4)................Dec........29......(254)........283.........111%
Biomet(2).......................May.....(142)…..(369).......227...........62%
Total of 10 Other Large Corps….5,260….2,803…..2,457……….88%

The 3 Large Utility Corps:
NiSource........................Dec........436.......396..........40..........10%
Duke Energy Indiana…...Sep(5)…..331…….231……...100……....43% Vectren.........................Dec.........208…....197..........11.............6%
Total of 3 Large Utility Corps........975......824.........151...........18%

Total of All 15 Large Corps.......17,114..12,596......4,518.........36%

(1) WellPoint excludes large one-time gain of sale of business.
(2) Zimmer Holdings and Biomet both exclude large Goodwill and Other Intangible Asset impairment charges.
(3) Simon Property Group is an REIT and the income number here is Consolidated Net Income.
(4) Duke Realty is an REIT and the income number here is Income from Continuing Operations.
(5) Duke Energy Indiana Dec 2010 information is not yet available, thus I used the 9 months ended Sep 2010 numbers.

Yeah, that's correct....these 15 Largest Publicly-Held Corps with an SEC Location Code in Indiana had their Total Pretax Earnings for their most recent fiscal year 2010 increase sharply by 36% over 2009, going from $12,596 million in 2009 to $17,114 million in 2010.

And look just how incredibly consistent this earnings growth was. Of the 15 Large Indiana Corps, 14 had earnings growth in 2010, and the one that didn't, had its earnings decline by only 1%.

Also, just look how those 10 Large Corps other than the Dominant 2 performed in 2010….with total earnings up an incredible 88% in 2010.

And about half of the country still thinks that the Obama Administration is not helping the US economy. These strong 2010 Indiana earnings numbers are telling the same story that the stock market is telling….that the Obama Administration has really helped the US economy.

I think it's high time for Big Corps to start giving back to the country and hiring employees, and for Indiana legislators to start working on real job creating stimulation initiatives, rather than going off target on things like this attempted Right-to-Work legislation and myopic, poorly reasoned, and patently unfair education legislation.

I don’t think that Right-to-Work Legislation and many of these education reform(?) initiatives were what Indiana citizens were voting for in the November 2010 Election. The State Legislature should focus on serving the entire State of Indiana, and not just its big business constituents.

The above research, where I found 15 Indiana Big Corps, which generated total 2010 earnings growth of 36%, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 1 additional Indiana Big Corp, Springleaf Finance, which is shown here below. When I include Springleaf Finance, Indiana's total earnings growth for 2010 increases from 36% to an even more robust 44%.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Addition

Springleaf Finance(1).......(253)........(888).........635......72%

(1) Springleaf Finance is the former Evansville-based American General Finance, which was previously 100% owned by AIG. As of November 30, 2010, AIG now owns 20% of Springleaf Finance, with the other 80% owned by Fortress Investment Group, a New York-based global investment manager. The above Springleaf 2010 Core Pretax Loss of $253 mil excludes a $1.5 bil bargain purchase gain (yeah, that amount is not a misprint, and it is included in Springleaf's 2010 reported earnings).

Key to Wisely Balancing State Budgets: Narrowing the Corporate Income GAP

After reviewing and analyzing literally thousands of large publicly-held company financial statements and footnotes in their annual SEC filings, it is pretty clear to me that the best way to balance all of the severely-stressed US State Budgets is to simply focus on narrowing the huge difference between what Big Corps report, and what in all fairness they should be reporting, as their taxable income to individual US States.

There are many aspects to narrowing this Corporate Income GAP. Let me first focus on Multinational Corps and their US Income and their Foreign Income. Later I'll address other strategies to narrow this Corporate Income GAP, that is devastating US State Budgets, and also the US Federal Budget, for that matter.

Obviously, the higher the portion of Worldwide Pretax Income which gets included in US Pretax Income, the higher the US State Corporate Income Tax Paid.

I did a quick study of the larger Big Multinational Corps. Unfortunately, there are more than a few that do not disclose their US Pretax Income either directly or indirectly, even though they have very significant foreign operations. I really don’t understand why these Multinational Corps are deciding to evade financial transparency, and I also don’t understand why their external auditors, and also the SEC, don’t act responsibly here. As an aside, why give the SEC and IRS more funding, when their execution is so ineffective now? Why throw good money you don't even have at something bad? Anyway, these Big Multinational Corps are excluded below.

On the positive side, here are the very favorable GAPs to both the US Government and to the US States, where the Big Corps Percentage of Worldwide Pretax Income generated in the US (US Profit Mix) significantly exceeds their Percentage of Worldwide Revenues generated in the US, or to external US customers, (US Revenue Mix) in total for the three years 2007 through 2009:

..................................Three Years 2007 through 2009........
………………………………………………………….....................Favorable
..............................US Profit Mix...US Revenue Mix.......GAP

Texas Instruments………72%..................12%..................60%
Intel………………………...70%..................15%..................55%
Applied Materials..........54%..................12%..................42%
Qualcomm………………....44%....................7%..................37%
Visa………………………......90%..................58%..................32%
Biogen IDEC..................77%..................53%..................24%
Harley-Davidson*..........94%..................72%.................22%
News Corp……………….....73%..................52%.................21%
Halliburton....................61%..................41%..................20%
Campbell Soup...............90%..................71%..................19%
Procter & Gamble…….56%..................38%..................18%
Disney............................93%..................75%..................18%
IBM………………………......52%..................36%..................16%
American Express……84%..................69%..................15%
PPG Industries................63%..................48%..................15%
McDonalds…………….....49%..................35%..................14%
Gilead Sciences…………….65%...................52%..................13%
Mosaic............................57%..................45%..................12%
Illinois Tool Works..........54%..................43%..................11%
Monsanto.......................65%...................54%..................11%
Johnson Controls*.........47%...................37%..................10%
Becton Dickinson............55%..................45%..................10%
3M………………………….....47%..................37%..................10%
United Parcel Service…...86%..................76%.................10%
Viacom…………………….....81%..................72%...................9%
Colgate Palmolive……...…32%..................24%...................8%
Kimberly Clark……………..61%..................53%...................8%
Oracle…………………….......50%..................43%...................7%
McGraw-Hill...................78%..................72%...................6%
Deere..............................61%..................55%...................6%

* On Wisconsin! On Wisconsin!

Companies in BOLD above are ones in the top 50 in Total Core Pretax Income for the past 12 years. There are 30 Big Corps in the above list, with 6 of them in the Top 50, including #9 IBM.

The above Big Multinational Corps should be the ones the Obama Administration and all of the US States should be touting as the Patriotic Champion Big Corps. To explain it simply, using Intel as the prized poster child company, Intel does its Research and Development mostly in the US, manufactures its product mostly in the US, and then sells a very high percentage (85%) of these US manufactured products overseas. A substantial portion of Intel's profit is income taxed in the US (70%), by both the US Federal Government and by US State Governments. End result, the bulk of the related jobs are in the US and the bulk of the corporate income tax receipts are in the US. This is a great outcome for both US jobs and for the US Federal and State Government Financial Coffers.

However, substantially overwhelming these Big Multinational Corps with very favorable GAPs, like Intel, are the many more, and also so many just gigantic, Big Corps that have very unfavorable GAPs to both the US Government and to the US States, where the Big Corps Percentage of Worldwide Pretax Income generated in the US falls significantly short of their Percentage of Worldwide Revenues generated in the US, or to external US customers, in total for the three years 2007 through 2009:

..................................Three Years 2007 through 2009.........
…………………………………………………………...................Unfavorable
.................................US Profit Mix..US Revenue Mix......GAP

Morgan Stanley.........(208)%................56%...............264%
Schering-Plough(07-08)(143)%................33%...............175%
Marsh & McLennan.........(75)%.................47%...............122%
Hess……………………..........(12)%.................81%.................93%
Ingersoll-Rand plc*.........(33)%................59%.................92%
Whirlpool........................(33)%................50%.................83%
Eaton................................(5)%................60%.................65%
Forest Labs........................34%................98%.................64%
Pfizer…...……………..........(17)%................45%.................62%
Dow Chemical..................(23)%................33%.................56%
Tyco International, Ltd*.....7%.................48%.................41%
Nabors Industries, Ltd……..7%..................60%.................53%
Murphy Oil…………….........23%..................75%.................52%
Marathon Oil……………...43%..................90%................47%
Alcoa................................11%...................54%................43%
Eli Lilly………………….......13%...................55%................42%
AES……………………...........(22)%.................19%.................41%
Bank of America………..49%...................87%................38%
Dell……………………...........15%...................53%................38%
Fortune Brands................33%...................70%................37%
Abbott Labs…………........12%...................49%................37%
Amgen…………………........42%...................79%................37%
Cooper Industries plc.......33%...................69%................36%
Noble Energy………….........22%...................56%................34%
Cummins...........................11%...................44%................33%
JPMorgan Chase………...43%...................74%................31%
Baxter…………………...........11%....................42%................31%
Cisco Systems…………....21%....................51%................30%
GE…………………….............19%....................48%................29%
Merck…………………..........28%....................56%...............28%
Medtronic………………........34%……………......61%................27%
Avon Products.................(7)%...................20%................27%
Freeport McMoran*...........9%....................36%................27%
Southern Copper................0%....................26%................26%
Prudential Financial*........45%....................71%...............26%
Apache…………………..........14%....................40%...............26%
Ebay……………………...........21%....................47%...............26%
Owens Illinois....................0%.....................25%...............25%
Seagate Technology*..........5%....................29%...............24%
McKesson.........................69%....................92%...............23%
Cardinal Health................77%....................99%...............22%
Chevron…………………......21%....................43%...............22%
Tyco Electronics, Ltd*........8%....................28%...............20%
ConocoPhillips…………..48%....................68%...............20%
Paccar..............................17%....................36%................19%
Masco...............................58%...................77%................19%
International Paper*........60%...................78%.................18%
Stryker.............................46%...................64%.................18%
Microsoft………………......40%....................58%................18%
Bristol Myers Squibb…44%....................60%................16%
ExxonMobil……………....14%....................30%................16%
Accenture……………….......20%....................35%................15%
Weatherford Intl, Ltd……..17%....................32%................15%
Franklin Resources...........52%....................66%................14%
Yum Brands......................32%...................45%.................13%
Parker Hannifin................45%....................58%.................13%
Occidental Petroleum.51%....................63%.................12%
Anadarko Petroleum……..70%....................82%.................12%
Covidien plc.....................45%....................56%.................11%
Newmont Mining……….....17%....................28%..................11%
Cameron International.....39%...................50%..................11%
Air Products & Chemicals.36%...................46%..................10%
Western Union.................11%....................21%..................10%
Apple…………………….......39%....................49%..................10%
JNJ………………………........41%.....................51%..................10%
Nike………………………........32%....................42%..................10%
Praxair............................34%....................43%....................9%
Computer Sciences..........53%....................62%....................9%
Bunge, Ltd.......................15%.....................24%....................9%
Duke Energy……………......82%.....................91%....................9%
Rockwell Automation......41%.....................50%....................9%
United Technologies..43%.....................51%....................8%
Mead Johnson Nutrition..31%.....................39%....................8%
State Street Corp…………...58%....................64%....................6%
DirecTV...........................83%....................89%....................6%

* For just the two years 2007 and 2009.

Companies in BOLD above are ones in the top 50 in Total Core Pretax Income for the past 12 years. There are 75 Big Corps in the above list, with 21 of them in the Top 50, including #1 ExxonMobil, #2 GE, #3 Chevron, #4 Microsoft, #6 Bank of America, and #7 ConocoPhillips.

When you review the extensive second list above showing the Big Corps with significant Unfavorable GAPS, two industries are particularly prevalent: Big Oil and Big Pharma.

US States, and also the US Federal Government for that matter, should be asking the US and Foreign Big Oil Corps for precisely the details of their highly unusual breakdown between US and Foreign Pretax Income, as shown in their annual report footnotes. I think there is something strange going on here between how this Pretax Income is being allocated between the US and Foreign. And I also think the US Federal Government should consider wise legislative measures to narrow this extremely Unfavorable Big Oil Corporate Income GAP. And if the US Federal Government refuses to act here, then I think US States should consider taking their own legislative measures to ensure that Big Oil includes a fair amount of its Worldwide Income allocated to the US.

I also think the US Federal Government should close many of the Big Oil tax loopholes, particularly Percentage Depletion, 100% tax expensing of Intangible Drilling Costs, LIFO Inventory, and the Domestic Production Activity Tax Deduction. And when this happens, US States will also be receiving a substantial increase in Big Oil Corporate Income Tax Receipts. And if the US Federal Government refuses to act on closing these massive Big Oil tax loopholes here, then I think US States should consider taking their own legislative measures to do so.

Big Pharma obtains massive tax benefits from their shifting of income to low-taxed countries. Just think about how unfair and just crazy the following situation is....A typical Big Pharma Corp does a substantial portion of its Research and Development on new drugs in the US, gets a US federal and US state income tax deduction for these R&D costs, and also a US R&D tax credit, to boot. Then after drug discovery, it transfers the intellectual property (the drug compound) to a foreign tax haven, like Puerto Rico and Ireland, where the drug is manufactured, and thus the massive amount of profit is recognized in this tax haven. And then a good chunk of the manufactured drugs are sold to US customers, some of whom even live very close to where the R&D was performed on the drug in the first place. What a Roundhouse transaction!

But after this Roundhouse transaction goes full circle, when Uncle Sam and the US States put their hands in their pockets, they find no corporate income tax receipts. In fact, they both gave income tax deductions to the drug company for the R&D costs, and also granted R&D tax credits, but tax havens like Puerto Rico and Ireland are where the massive profits from the drug are located, and income taxed at an incredibly very favorable income tax rate, and particularly so in Puerto Rico.

And now these Drug companies are lobbying the US heavily to be able to repatriate, at a very favorable US tax rate, all of their very low-taxed foreign earnings, which are now parked in their foreign tax havens.

Gosh, I call this just flat out piling on. The US Federal Government and the US States are under severe financial stress and they let these Big Drug companies get away with avoiding so much in corporate income taxes.

Clearly, from a fairness standpoint, something needs to be done here.

First, when the intellectual property is transferred to the foreign tax haven, it is only reasonable that this intellectual property could be worth a fortune, and thus there should be a substantial US income tax on the gain from transferring this property to the tax haven where the drug is to be manufactured. And then the corporate income tax receipts from that gain should substantially increase the financial coffers of both the US government and the US State governments.

Second, in a drug Roundhouse transaction, where a US drug company does the drug research in the US and then the resultant drug is manufactured in a foreign tax haven, and then subsequently sold back to the US, I think there should be some kind of a tax or import duty shared by the US government and the US State government on the drug sold to the US customer.

Third, I think Advertising Costs incurred by Drug companies should not be 100% tax deductible in the US in the first year. Instead, I think they should be amortized over at least a several year period. After all, the patent life on the drug is typically pretty long. And besides, when you think about it, what you have is all of the drug profit recognized in the foreign tax haven, so why should the drug company be allowed any income tax deduction for Advertising the drug in the US, where there's little or no profit recognized from the drug?

Fourth, there appear to be many costs incurred by Big US Drug companies that are presently deducted in the US, but which are related to specific drugs, whose profits are recognized in foreign tax havens. One example here are the costs to defend the US Drug Company against lawsuits related to a specific drug, which is manufactured in a foreign tax haven. I think there is a serious mismatch here. I don't think it make any sense to allow a US income tax deduction on a drug, which has nearly all of its profit recognized in another tax jurisdiction, in this case a foreign tax haven.

Fifth, normally I wouldn't allow any favorable tax benefit from foreign earnings repatriation. The Multi-national Corp knew the tax rules on the front end, but it still decided to manufacture the product in a foreign tax haven, knowing that if it later wanted to repatriate its foreign profits, there would be a 35% US federal income tax, plus typically also a State income tax.

However, since this US jobless recovery is so severe, and coupled with the just horribly high and very volatile Energy Costs, I think I would allow a one-time somewhat discounted foreign earnings repatriated tax rate, assuming there is a like amount of money invested by the Corp in the US in either R&D, in Renewable Energy Investments, in Energy Efficiency Building Retrofit Investments, or in clearly new Job Creation, like the building of a new manufacturing plant, or the substantial remodeling of an existing manufacturing plant.

And sixth, I think the US Federal Government needs to hire a cadre of the very best Multi-State Tax Experts it can get. The US States are no match for the multi-faceted State Corporate Income Tax Arsenals of the Big Multi-national Corps. Among other things, these State Tax Experts hired by the US government should advise the US States on the necessary steps to insure that the States will maximize their State Corporate Income Tax Receipts from any Multi-national Corp's Foreign Earnings Repatriation.

And it's not just Big Oil and Big Pharma, as you can see from the earlier list of Big Corps with huge Unfavorable GAPS in US Profit Mix vs US Revenue Mix. Many of the same points I made earlier about narrowing this GAP would apply to Multi-national Big Corps in other US industries, as well. It's all about the allocation of revenues and expenses between the US and Foreign.

I would be particularly vigilent in focusing on the appropriateness of Transfer Pricing being used on inter-company transactions between the US companies and their foreign affiliates. And the same goes for foreign-owned Big Corps and their Transfer Pricing with their US affiliates. When you have such huge Statutory Tax Rate differences between the US and the foreign tax havens, it only makes sense that Multi-national Corps would try to game the system. The potential economic rewards to them are just too huge. Reported Earnings drive stock prices, and also drive Executive Bonuses and Stock Option Grants.

But once you get the US Income vs. Foreign Income corrected, you still need to focus on the US Income allocation among US States. When you review purely domestic Big Corps, the actual state income tax rate being paid by many of them is just so incredibly low.

Just look at the Big Two purely domestic Big Corps in US Health Care: Minnesota-based United Health Group and Indiana-based WellPoint. When Minnesota's State Corporate Income Tax Rate is 9.8%, Indiana's State Corporate Income Tax Rate is 8.5%, the overall average State Corporate Income Tax Statutory Rate in the 44 US States that require Corporations to pay State Corporate Income Tax is 7.4%, there is no mathematical way that United Health Group should have paid a State Corporate Income Tax rate of only 2.46% and WellPoint of only 2.19% for the most recent 12 years.

Something has to be going on with a Shift of Income between Higher Corporate Income Tax Rate States to lower Corporate Income Tax Rate States, and perhaps even to no Income Tax Rate States. And this Income Shift between US States can't possibly be accounting for all of the substantial GAP in these State Tax Rates. There has to be other things going on in Multi-State Corporate Income Tax Strategic Planning that accounts for this huge unfavorable GAP.

I think the SEC should be taking a larger role here when you have Big Corps with such a huge GAP between State Corporate Income Tax Rates being paid and the Statutory State Corporate Income Tax Rates. There has to be some Investor Uncertainty, certainly by at least Sophisticated Investors, on this salient accounting issue. It's all about whether reported Corporate Earnings can be relied on. And it's also about financial transparency in footnote disclosure.

Speaking of financial transparency, I really can't understand how huge Corps like JNJ, Bristol Myers Squibb, Colgate-Palmolive, all of the huge US Defense Contractors...General Dynamics, Northrop Grumman, Raytheon, and Lockheed Martin....and also some other Big Corps think it is perfectly OK to not report the amount of their annual Current State Corporate Income Tax Paid or Payable. And again, where is the SEC here?


Much more to come.

Wisconsin Big Corp Profits Soar in 2010

Governor Scott Walker recently gave tax breaks for Wisconsin Corps, triggering the State of Wisconsin to have a Deficit. And he wants these tax breaks funded by State employees, including State educators, nurses, firefighters, policeman, and many other valuable workers.

And as part of this budget balancing scheme, he also wants to kill the bargaining rights of State employees, to boot.

Well, I think it would be wise to see just how Wisconsin Big Corps’ earnings came out in 2010.

Let me show you below just how Wisconsin's 13 largest Corps did as disclosed in their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases:

Wisconsin Big Corps Most Recent Annual Pretax Earnings (PTI)

...................................FYE......PTI........PTI.....Increase(Decrease)
Wisconsin Big Corp.....2010...2010.....2009.......Amount.....%.....
................................................(millions of dollars).....

Johnson Controls........Sep.....1,763.....(318).......2,081........654%
Kohl's..........................Jan.....1,588....1,425...........163...........11%
Oshkosh*.....................Sep.....1,212.........12.......1,200...10,000%
Fiserv..........................Dec.......793.......734............59.............8%
Wisconsin Energy........Dec.......704.......591...........113...........19%
Joy Global...................Oct........679.......683............(4)..........(1)%
Rockwell Automation..Sep........544.......274..........270..........99%
Alliant Energy.............Dec........453.......120..........333.........278%
Harley-Davidson.........Dec........390.......179..........211..........118%
Manpower*.................Dec........264.........38..........226..........595%
Associated Banc..........Dec........(41).....(285).........244............86%
MGIC Investment........Dec......(359)..(1,765)......1,406...........80%
Marshall & Ilsley.........Dec......(901)...(1,396).........495...........35%

Total of 13.............................7,089........292......6,797.....2,328%

* Excludes Intangible Asset Impairment Charges. If these charges were included, the above increase in Total Pretax Income for 2010 of $6,797 mil would be a much higher $7,619 mil.

Yeah, that's correct....these 13 Largest Wisconsin HQed Corps had their Total Pretax Earnings for their most recent fiscal year 2010 increase by a staggering 2,328% over 2009, going from $292 million in 2009 to $7,089 million in 2010. And about half of the country still thinks that the Obama Administration is not helping the US economy. Go figure! I think it's high time for Big Corps to start giving back to the country and hiring employees, like Wisconsin-based Kohl's has taken the lead on.

Are Governor Walker's actions fair to all Wisconsin residents? I think his actions here have to go down in US State history as one of the biggest attempted snow jobs of State Citizens by a sitting State Governor and his Controlled State Legislature. I don't think this is what Wisconsin citizens were voting for in November.

Before, there were only two recent things that really upset me about Wisconsin:

(1)How bad the Badgers football team kept pouring it on against the clearly out-manned Indiana Hoosiers, and

(2)How Wisconsin voters did not reelect probably the fourth smartest person in the US government....Russ Feingold....just behind Steven Chu, Barack Obama, and Hillary Clinton.

But this attempted snow job of Wisconsin's State citizens clearly trumps the other two.

The above research, where I found 13 Wisconsin Big Corps, was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 6 additional Wisconsin Big Corps, which are shown here below.

..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions

Wisconsin (6)
Northwestern Life Insur(1)..720...........517...........203.....39%
American Family Insur(2)...661............291...........370....127%
Bucyrus Intl........................461............447.............14.......3%
Bemis..................................327............240............87.....36%
Snap-On..............................277............205............72.....35%
Regal Beloit.........................221.............138............83.....60%

(1) Northwestern Life Insurance is a Mutual Company. The earnings numbers here are PTI before net realized capital losses.
(2) American Family Insurance is a Mutual Company.

Update on Wisconsin Larger Corps Have Paid Modest Amounts of State Corporate Income Taxes

In closely watching the very interesting developments in Madison, like many others have, I want to weigh in with some perspectives on some key earnings and tax numbers of Wisconsin's largest Corps. From this analysis, it’s pretty clear to me that Governor Scott Walker is not being totally transparent on the financial front with Wisconsin citizens. Let me explain.

In performing a quick review of SEC filings of large corps with an SEC State Location Code in Wisconsin, I found 12 Corps with Core Pretax Income above $3 bil for the most recent 12 years. My definition of Core Pretax Income excludes large Asset Impairment Charges.

I excluded Wisconsin Energy from my below first two lists of large Wisconsin Corps, even though it generated $4,905 mil of Pretax Income in the most recent 12 years, because it didn’t disclose its Current State Income Tax Paid or Payable, instead just combining both Current and Deferred State Income Taxes together. That leaves 11 large Wisconsin Corps.

MGIC Investment Corp was excluded from the below two lists of large Wisconsin Corps. It generated $6,080 mil of Pretax Earnings in the 9 years 1998-2006. However, with the financial meltdown, it experienced large pretax losses totaling $4,948 mil for the most recent three years (2007-2009).

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 core pretax income, both in total for the past twelve years for each of these 11 largest Wisconsin Corps. These 11 largest Wisconsin Corps below had a weighted average state corporate effective income tax rate paid of a modest 3.03%, or a 62% discount to Wisconsin’s current state corporate income tax rate of 7.90%.

….……………………...............Current……...Core…….......State
….…………………….................State.....Consolidated....Effective
….…………………….................Tax………...Pretax………..Tax Rate
….…………………….................Paid……....Income………...Paid
….……………….…........................(Millions of Dollars)

11. Fiserv………………….........311………....6,237………...4.99%
10. Alliant Energy(99-09)….195………....3,931*……....4.96%
..9. Kohl’s............................497…….....13,133……......3.78%
..8. Marshall & Ilsley……......167………....4,959*………..3.37%
..7. Harley Davidson….........364...........11,215.…........3.25%
..6. Johnson Controls………..354……......12,286……......2.88%
..5. Oshkosh………………….......74…………..3,194*……....2.32%
..4. Joy Global(02-09)………...56…………..3,138………...1.78%
..3. Associated Banc……….......52............3,215….........1.62%
..2. Manpower….....................47…….......3,855*.........1.22%
..1. Rockwell Automation.......34…….......5,860…….....0.58%

Total all 11……….................2,151….......71,023…….....3.03%

* Excludes large Asset Impairment Charges

The effective state corporate income tax rate paid for the most recent 6 years was a lower 2.88% for these 11 largest Wisconsin Corps.

And then, below here is a summary of what I call a fair measure of the Total State Corporate Income Tax Loopholes Taken by these 11 largest Wisconsin Corps in the most recent 12 years. In estimating what I think is a fair measurement of State Corporate Income Tax Loopholes Taken here, for ease of computation, I started by multiplying the current Wisconsin Corporate Income Tax Rate of 7.90% by the total Consolidated Core Pretax Income of each large Wisconsin Corp for the last twelve years. Then, I subtracted the actual total State Income Tax Paid by each of these Corps for the same twelve years.

………………………………………………………………..............Estimated
……………………….........................WI…….....State……..State Tax
………………….........….............Corporate..Effective.....Loophole
………………….........………….........Tax……..Tax Rate…....Taken
………………..........…………...........Rate……....Paid…....Last 12 Years
…………………………………………………..............................(mils of $s)

..1. Johnson Controls..............7.90%.........2.88%............617
..2. Kohl’s................................7.90%........3.78%............541
..3. Harley-Davidson...............7.90%........3.25%.............522
..4. Rockwell Automation........7.90%........0.58%............429
..5. Manpower.........................7.90%........1.22%.............258
..6. Marshall & Ilsley….............7.90%........3.37%............225
..7. Associated Banc………….....7.90%........1.62%.............202
..8. Joy Global………………........7.90%.........1.78%............192
..9. Fiserv…………………….........7.90%.........4.99%.............182
10. Oshkosh………………….........7.90%.........2.32%............178
11. Alliant Energy……………......7.90%.........4.96%............116

Total all 11………………………………………3,460 (yeah, $3.5 bil)

For the most recent six years, the related estimated total State Corporate Income Tax Loopholes Taken, as I have defined them above, by these 11 largest Wisconsin Corps, was $2.2 bil, as compared to the above $3.5 bil for the past twelve years.

I think it makes much more sense to balance a State’s severely stressed budget by closing some of the many huge State Corporate Income Tax Loopholes for Big Corps, rather than by either laying off, or reducing the wages or employee benefits of, State employees, including State educators, or by substantially increasing college tuition for state universities.

And I think the idea of cutting the Wisconsin State Corporate Income Tax Rate, or killing Combined State Income Tax Reporting, when you are facing such a financial crisis, is flat out crazy. Wisconsin’s 11 largest Corps are only paying an effective state income tax rate of a modest 3.03% now. Big Corps hate Combined State Income Tax Reporting because it cuts into their ability the maximize the amounts of State Corporate Tax Loopholes they can take advantage of. To minimize State Corporate Income Tax Avoidance, the best approach is for every US State to require Combined Income Tax Reporting.

The Statutory Wisconsin Corporate Tax Rate of 7.90% is nothing but an abstract State Tax Rate Sticker Price. I think the State’s focus should be on just why is there this huge GAP between the Sticker Price Tax Rate of 7.90% and the actual state income tax rate paid of 3.03%. That’s how you effectively solve problems. The State either is granting State Tax Loopholes to its Big Corps on purpose, or it is not executing in collecting the proper amount of Corporate State Income Tax owed to it.

It shouldn't be that difficult to determine if the State of Wisconsin is collecting as much as it should be from all out of State Big Corps. As one starting point, to get the best bang for the buck, below here is a list of the 50 US Big Corps with the highest Core Pretax Income for the most recent 12 years. It is sorted by Ascending Effective State Corporate Income Tax Rate Paid, for ease of analysis. I think this is a monumentally fairer, wiser, and more effective way to balance a State Budget than inappropriately putting it entirely on the backs of State Employees, including State Educators.

.....................................................................State
.......................................State........Core........Tax
........................................Tax........Pretax......Rate
........................................Paid.......Income.....Paid
.......................................12 Yrs......12 Yrs....12 Yrs
..........................................(million of $s)

1 Eli Lilly..........................(15).....45,671....(0.03)%
2 Dell...................................0......37,742.....0.00%
3 Allstate...............................0......36,823.....0.00%
4 Bristol Myers Squibb..392*.....51,633.....0.76%*
5 ExxonMobil............. 4,490....486,408.....0.92%
6 Hewlett-Packard..............642......66,446.....0.97%
7 United Technologies..487......48,572.....1.00%
8 IBM..............................1,510....147,733.....1.02%
9 Microsoft...................2,094....192,455.....1.09%
10 Abbott Labs................619......52,542.....1.18%
11 3M.................................563......47,265.....1.19%
12 Berkshire Hathaway.....1,339*..111,960.....1.20%*
13 Coca-Cola.......................938.....77,377.....1.21%
14 Occidental Petroleum731.....55,238.....1.32%
15 GE...............................3,156....235,906.....1.34%
16 PepsiCo...........................868......63,882.....1.36%
17 Chevron....................3,057....211,552.....1.45%
18 Procter & Gamble.....1,765....120,702.....1.46%
19 Pfizer...........................1,920....123,204.....1.56%
20 Amgen..........................728......40,300.....1.81%
21 AT&T NJ(1998-2004)......710......38,045.....1.87%
22 Conoco Phillips........3,062.....163,228.....1.88%
23 Marathon Oil................858.......44,849.....1.91%
24 Intel..............................1,981.....101,986.....1.94%
25 Wachovia(98-07).......1,290.......61,531.....2.10%
26 American Express...........990.......45,364.....2.18%
27 JNJ.............................2,980*....134,152.....2.22%*
28 Wells Fargo................2,461.....108,550.....2.27%
29 McDonalds...................1,029.......44,647.....2.30%
30 Bell South(1998-2005)...960.......41,341.....2.32%
31 UnitedHealth............1,014.......41,242.....2.46%
32 Merck........................2,703.....107,889.....2.51%
33 Citigroup...................4,081.....149,636.....2.73%
34 Walmart.....................5,013.....179,424.....2.79%
35 Goldman Sachs.............2,553......90,605.....2.82%
36 Altria GroupNY(98-07)4,371.....143,203.....3.05%
37 Bank of America.......5,453....178,093.....3.06%
38 AT&T TX....................4,521**.147,490.....3.07%**
39 Kraft Foods...................1,488......47,469.....3.13%
40 United Parcel Service....1,586......50,436.....3.14%
41 Cisco Systems................2,582......75,141.....3.44%
42 Apple............................1,784......51,465.....3.47%
43 Oracle...........................2,303......65,612.....3.51%
44 JPMorgan Chase.......4,289.....121,908.....3.52%
45 Wash Mutual(98-07).....1,531.......39,487.....3.88%
46 Disney...........................1,864......47,950.....3.89%
47 Morgan Stanley.............2,652......67,759.....3.91%
48 Verizon.........................5,372.....133,814.....4.01%
49 US Bancorp...................2,283......52,473.....4.35%
50 Home Depot..................3,268......69,621.....4.69%

Total Top 50...................102,316..4,897,821....2.09%

* Includes both Current and Deferred State Income Tax, thus both State Income Tax Paid and Effective State Tax Rate Paid should be much lower than what is shown above
** Includes both Current State Income Tax Paid and Foreign Income Tax, thus both State Income Tax Paid and Effective State Tax Rate Paid should be much lower than what is shown above

And then, here is a list of the second layer of 50 US Big Corps with the highest Core Pretax Income for the most recent 12 years. It is sorted by Ascending Effective State Corporate Income Tax Rate Paid, for ease of analysis.

.....................................................................State
.......................................State........Core........Tax
........................................Tax........Pretax......Rate
........................................Paid.......Income.....Paid
.......................................12 Yrs......12 Yrs....12 Yrs
..........................................(million of $s)

51 Hess..........................(123)......22,786....(0.54)%
52 Phillip Morris(07-09)...(15)......28,064....(0.05)%
53 Apache..........................23.......30,343.....0.08%
54 Wyeth (1998-2008).....88.......34,285.....0.26%
55 Dupont........................93.......33,513.....0.28%
56 Travelers.......................99.......26,156.....0.38%
57 Texas Instruments.......105.......24,561.....0.43%
58 Devon Energy..............140.......28,426.....0.49%
59 Ford.............................210.......30,242.....0.69%
60 Alcoa...........................177.......24,115.....0.73%
61 Schlumberger...............231.......31,216.....0.74%
62Anadarko Petroleum285.......28,132.....1.01%
63 Tyco Intl, Ltd...............275.......27,031.....1.02%
64 Caterpillar....................315.......30,412.....1.04%
65 MetLife.........................309.......28,117.....1.10%
66 Colgate-Palmolive....286*.....24,982.....1.14%*
67 Valero Energy...............359.......29,225.....1.23%
68 Boeing...........................449.......34,831.....1.29%
69 Medtronic...................409*.....31,607.....1.29%
70 Prudential Financial......351.......24,585.....1.43%
71 Capital One Fincl............317.......21,532.....1.47%
72 Dow Chemical................422.......28,200.....1.50%
73 Union Pacific.................341.......21,893.....1.56%
74 Honeywell.....................406.......25,881.....1.57%
75 Emerson Electric...........443.......27,558.....1.61%
76 Accenture(2000-09)..345.......20,724.....1.66%
77 Kimberly Clark..............445.......26,029.....1.71%
78 News Corp(2002-09).....577.......31,894.....1.81%
79 Sears Holdings...............474.......23,910.....1.98%
80 National City(98-07).....497.......24,178.....2.06%
81 Burl No Santa Fe.............527.......24,552.....2.15%
82 WellPoint....................649.......29,665.....2.19%
83 PNC Fincl Services..........521.......23,367.....2.23%
84 Duke Energy...................729.......30,602....2.38%
85 Illinois Tool Works.........509.......21,129.....2.41%
86 Qualcomm.....................776.......25,105.....3.09%
87 Southern Company.........913.......24,959.....3.66%
88 Dominion Resources.......951.......24,825.....3.83%
89 Lockheed Martin..........1,062*.....26,615.....3.99%
90 Loews.............................849.......21,180.....4.01%
91 Comcast..........................956.......23,671.....4.04%
92 Walgreens.....................1,150.......27,781.....4.14%
93 Time Warner.................1,237.......28,134.....4.40%
94 Exelon..........................1,454.......32,057.....4.54%
95 Lowe's...........................1,560.......33,927.....4.60%
96 Target...........................1,927.......36,809.....5.24%
97 Bank of NY Mellon.........1,183.......21,569.....5.48%
98 Anheuser-Busch(98-07)1,288.......23,436.....5.50%
99 CVS Caremark................1,596.......27,592.....5.78%
100 Google(2002-09)........1,685.......27,244.....6.18%

Total Second 50................29,855...1,358,647....2.20%

* Includes both Current and Deferred State Income Tax, thus both State Income Tax Paid and Effective State Tax Rate Paid should be much lower than what is shown above

And then, here is a list of the third layer of 50 US Big Corps with the highest Core Pretax Income for the most recent 12 years. It is sorted by Ascending Effective State Corporate Income Tax Rate Paid, for ease of analysis.

.............................................................................State
...............................................State........Core........Tax
................................................Tax........Pretax......Rate
................................................Paid.......Income.....Paid
...............................................12 Yrs......12 Yrs....12 Yrs
..................................................(million of $s)

101 Chubb....................................0.......20,513.....0.00%
102 Carnival Corporation.............0.......20,192.....0.00%
103 AFLAC...................................0.......18,817.....0.00%
104 ACE, Ltd.................................0.......16,426.....0.00%
105 Transocean, Ltd.....................0.......16,288.....0.00%
106 Chesapeake Energy...............69.......14,629.....0.47%
107 Freeport McMoRan(07-09).93.......15,472.....0.60%
108 Baxter...............................161.......18,596.....0.87%
109 Halliburton.........................168.......17,543.....0.96%
110 Applied Materials................164.......15,532.....1.06%
111 SunTrust Banks....................245.......20,702.....1.18%
112 Spectra Energy....................213.......17,481.....1.22%
113 Schering-Plough(98-08).258.......19,749.....1.31%
114 Cigna.................................229.......16,190.....1.41%
115 Deere..................................279.......19,540.....1.43%
116 Fifth Third Bancorp...... 244.......16,432.....1.48%
117 XTO Energy.........................240*.....15,756.....1.52%
118 MBNA(1998-2004).............280.......18,320.....1.53%
119 American Electric Power.....276.......17,237.....1.60%
120 BB&T...................................334.......20,637.....1.62%
121 FPL Group............................281.......16,103.....1.75%
122 Archers Daniel Midland.......309.......17,567.....1.76%
123 Entergy...............................306.......16,352.....1.87%
124 Kellogg................................338.......14,419.....2.34%
125 Nucor..................................341.......14,537.....2.35%
126 General Mills.......................456.......17,269.....2.64%
127 Aetna................................462.......16,827.....2.75%
128 Nike.....................................532.......19,355.....2.75%
129 Cardinal Health....................488.......17,663.....2.76%
130 Countrywide Fincl(98-07)...515.......18,595.....2.77%
131 Automatic Data Processing...527.......18,616.....2.83%
132 Norfolk Southern..................438.......15,116.....2.90%
133 FedEx...................................625.......19,958.....3.13%
134 Kroger..................................641.......18,518.....3.46%
135 Gannett................................628.......17,924.....3.50%
136 Best Buy................................659.......16,209.....4.07%
137 Safeway................................676.......16,536.....4.09%
138 GAP......................................701.......16,945.....4.14%
139 Genentech (1998-2008)........721.......17,372.....4.15%
140 Publix Super Markets............647.......14,783.....4.38%
141 HCA.....................................857.......19,440.....4.41%
142 Costco..................................782.......17,413.....4.49%
143 State Street Corp...................818.......17,793.....4.60%
144 Sysco....................................795.......16,088.....4.94%
145 Viacom (2003-09)................828.......15,544.....5.33%
146 PG&E.....................................960.......17,050.....5.63%
147 FirstEnergy........................1,047.......16,613.....6.30%
148 CBS.....................................1,299.......19,295.....6.73%
149 Public Service Entrpse Grp..1,286.......17,591.....7.31%
150 Bear Stearns(98-07)............1,184.......14,885..... 7.95%

Total Third 50.........................23,400.....868,428.....2.69%

* Includes both Current and Deferred State Income Tax, thus both State Income Tax Paid and Effective State Tax Rate Paid should be much lower than what is shown above

And then, here is a list of the fourth layer of 50 US Big Corps with the highest Core Pretax Income for the most recent 12 years. It is sorted by Ascending Effective State Corporate Income Tax Rate Paid, for ease of analysis.

..........................................................................State
............................................State........Core........Tax
.............................................Tax........Pretax......Rate
.............................................Paid.......Income.....Paid
............................................12 Yrs......12 Yrs....12 Yrs
...............................................(million of $s)

151 Alcon...................................0.......13,978.....0.00%
152 Hartford Financial Services..0.......12,528.....0.00%
153 Progressive Corp..................0.......11,934.....0.00%
154 AES....................................11.......13,560.....0.08%
155 Southern Copper.................13.......13,971.....0.09%
156 EOG Resources....................53.......13,721.....0.39%
157 Sara Lee..............................70.......13,083.....0.54%
158 Praxair................................94.......11,952.....0.79%
159 Baker Hughes.....................129.......12,369.....1.04%
160 Monsanto..........................142.......12,889.....1.10%
161 HJ Heinz............................149.......12,707.....1.17%
162 EMC...................................165.......13,575.....1.22%
163 Yum Brands.......................167.......11,993.....1.39%
164 Gillette(1998-2004)..........175.......12,298.....1.42%
165 Paccar...............................185.......12,596.....1.47%
166 Danaher.............................188.......11,749.....1.60%
167 SLM...................................231.......12,993.....1.78%
168 Consolidated Edison...........242.......13,344.....1.81%
169 Omnicom Group.................248.......13,525.....1.83%
170 Motorola............................258.......13,907.....1.86%
171 Campbell Soup....................232.......12,192.....1.90%
172 Comerica............................210.......10,638.....1.97%
173 CSX.....................................255.......12,133.....2.10%
174 ConAgra Foods...................286.......12,143.....2.36%
175 Keycorp..............................335.......12,650.....2.65%
176 Franklin Resources..............390.......14,140.....2.76%
177 Johnson Controls................354.......12,286.....2.88%
178 Staples.................................315.......10,643.....2.96%
179 Mellon Fincl PA(98-06)........323.......10,810.....2.99%
180 PPG Industries.....................334.......10,675.....3.13%
181 Harley-Davidson..................364.......11,215......3.25%
182 Masco..................................366.......11,125......3.29%
183 Kohl's...................................497.......13,133.....3.78%
184 Sempra Energy.....................484.......12,209.....3.96%
185 Time Warner Cable(03-09)...445.......10,558.....4.21%
186 Gilead Sciences.....................529.......12,268.....4.31%
187 Alltel(98-07)........................619.......13,858.....4.47%
188 Marsh & McLennan...............628.......13,961.....4.50%
189 Ebay.....................................583.......12,760.....4.57%
190 Limited Brands.....................564.......12,203.....4.62%
191 Waste Management...............533.......11,370.....4.69%
192 Constellation Energy............579.......11,485......5.04%
193 Golden West Fincl(98-05)....596.......11,552......5.16%
194 TJX......................................684.......13,211......5.18%
195 Charles Schwab....................719.......12,329......5.83%
196 Macy's..................................730.......12,318.....5.93%
197 McGraw-Hill.........................819.......12,712.....6.44%
198 Reynolds American..............903.......13,642.....6.62%
199 Edison International.............984.......14,112.....6.97%
200 Medco Health Solutions.......912.......10,815.....8.43%

Total Fourth 50......................18,092.....623,818....2.90%

And then, here is a list of the fifth layer of 50 US Big Corps with the highest Core Pretax Income for the most recent 12 years. It is sorted by Ascending Effective State Corporate Income Tax Rate Paid, for ease of analysis.

...............................................................................State
.................................................State........Core........Tax
..................................................Tax........Pretax......Rate
..................................................Paid.......Income.....Paid
.................................................12 Yrs......12 Yrs....12 Yrs
....................................................(million of $s)

201Genworth Fincl(01-09).....(40).....10,220....(0.39)%
202 Newmont Mining.....................0.........9,795.....0.00%
203 Lincoln National......................0.........8,742.....0.00%
204 Noble Corp..............................0.........8,224.....0.00%
205 Murphy Oil.........................66.......10,198.....0.65%
206 Avon Products......................66.......10,150.....0.65%
207 McKesson...........................83.........9,448.....0.88%
208 Eaton.....................................82.........8,539.....0.96%
209 Williams Companies.............102.........8,156.....1.25%
210Burlington Resources(98-05)122.........9,728.....1.25%
211 Air Products & Chemicals.....129........10,164.....1.27%
212 Northern Trust.....................131........10,176.....1.29%
213 Phelps Dodge(98-06)............108.........7,900.....1.37%
214 Becton Dickinson..................145........10,413.....1.39%
215 Cendant(1998-2005)............118..........8,110.....1.45%
216 National Oilwell Varco..........147.........9,351.....1.57%
217 Forest Labs...........................138.........8,691.....1.59%
218 Regions Financial..................194........10,112.....1.92%
219 M&T Bank..............................175.........8,962.....1.95%
220 Parker Hannifin.....................161.........8,143.....1.98%
221 Ingersoll-Rand, plc................196.........9,898.....1.98%
222 PPL.......................................222.......10,496.....2.12%
223 Covidien plc(04-09).............228.........9,561.....2.38%
224 Zimmer Holdings..................201.........8,084.....2.49%
225 Electronic Data Syst(98-07)..213.........8,537.....2.50%
226 Western Union(03-09)..........215.........8,334.....2.58%
227 Aon......................................275.......10,034.....2.74%
228 Autozone..............................264.........9,453.....2.79%
229 Energy Future Holdings........293........10,488....2.79%
230 Stryker.................................265.........9,333.....2.84%
231 Xcel Energy..........................280.........9,801.....2.86%
232 Textron................................239.........8,123.....2.94%
233 Discover Financial(04-09)....305.........9,587.....3.18%
234 JC Penney.............................281.........8,619.....3.26%
235 Fortune Brands.....................313.........9,097.....3.44%
236 Ameren.................................349.........9,872.....3.54%
237 Clorox...................................297.........8,296.....3.58%
238 Tribune(1998-2007).............349.........9,382.....3.72%
239 Weyerhaeuser.......................309.........8,025.....3.85%
240 Principal Financial................390.........9,622.....4.05%
241 Albertsons(98-05).................356.........8,457.....4.21%
242 Embarq(03-08).....................352.........7,988.....4.41%
243 Pitney Bowes.........................411.........8,793.....4.67%
244 Altria Group VA(08-09)........462.........9,666.....4.78%
245 H&R Block.............................406.........8,169.....4.97%
246 Sunoco..................................452.........8,819.....5.13%
247 Visa(04-09)..........................531.......10,120.....5.25%
248 SAIC CA(1998-2008)............452.........8,297.....5.45%
249 Genuine Parts........................433.........7,883.....5.49%
250 Progress Energy....................641.........9,005.....7.12%

Total Fifth 50..........................11,907.....457,061.....2.61%

And then, here is a list of the sixth layer of 50 US Big Corps with the highest Core Pretax Income for the most recent 12 years. It is sorted by Ascending Effective State Corporate Income Tax Rate Paid, for ease of analysis.

................................................................................State
..................................................State........Core........Tax
...................................................Tax........Pretax......Rate
...................................................Paid.......Income.....Paid
..................................................12 Yrs......12 Yrs....12 Yrs
.....................................................(million of $s)

251 Freeport-McMoran..................0.........7,845......0.00%
252 Torchmark..............................0.........7,553......0.00%
253 Cincinnati Financial.................0.........6,984......0.00%
254 Unum Group............................0.........6,528......0.00%
255 Diamond Offshore.....................1.........7,519......0.01%
256 Tyco Electronics, Ltd(04-09)..13.........6,834......0.19%
257 ITT.........................................16.........6,779......0.24%
258 DTE Energy.............................35.........7,089......0.49%
259 Rockwell Collins.....................48.........6,900......0.70%
260 Unocal(98-04).......................46.........6,502......0.71%
261 Weatherford Intl, Ltd..............46.........6,331......0.73%
262 Smith International................49.........6,554......0.75%
263 Mattel.....................................52.........6,529......0.80%
264 Rohm & Haas..........................60.........6,392......0.94%
265 Adobe Systems.......................82.........6,741......1.22%
266 Dover.....................................92.........6,493......1.42%
267 Coca Cola Enterprises...........103.........7,057......1.46%
268 Mosaic..................................116.........7,408......1.57%
269 Southwest Airlines................126.........7,833......1.61%
270 Xerox...................................126.........7,590......1.66%
271 Estee Lauder.........................128.........6,662......1.92%
272 Express Scripts.....................133.........6,553......2.03%
273 Clear Channel Comm.............175.........7,549......2.32%
274 VF Corp................................180.........7,685......2.34%
275 International Paper...............165.........6,602......2.50%
276 Precision Castparts................188.........7,368......2.55%
277 Paychex................................178.........6,476......2.75%
278 Pepsi Bottling........................203.........7,055......2.88%
279 Kinder Morgan......................222.........6,874......3.23%
280 L-3 Communications.............241.........7,400......3.26%
281 Hershey.................................249.........7,503......3.32%
282 UST........................................214.........6,367......3.36%
283 AmerisourceBergen...............248.........7,148......3.47%
284 Fidelity National Financial.....268.........7,268......3.69%
285 NRG Energy...........................287.........7,201......3.99%
286 Sherwin Williams...................275.........6,837......4.02%
287 T Rowe Group........................296.........6,826......4.34%
288 Bed Bath & Beyond.................330.........7,349......4.49%
289 SuperMedia............................358.........7,554......4.74%
290 May Dept Stores(98-04).........375.........7,726......4.85%
291 First Data (00-08)...................333.........6,582......5.06%
292 Nordstrom..............................375.........6,790......5.52%
293 Coach......................................393.........6,657......5.90%
294 Marriott..................................430.........7,187......5.98%
295 Lorillard(04-09).....................471.........7,870......5.98%
296 Starbucks................................443.........7,197......6.16%
297 Quest Diagnostics....................531.........7,872......6.75%
298 Yahoo.....................................554.........7,130......7.77%
299 Apollo Group..........................518.........6,425......8.06%
300 Moodys (99-09).....................741.........7,821......9.47%

Total Sixth 50...........................10,513.....352,995......2.98%

And then, here is a list of the seventh layer showing 70 US Big Corps with the highest Core Pretax Income for the most recent 12 years, which brings the overall total to the 370 US Big Corps with the highest Total Core Pretax Income for the most recent 12 years. This final layer of 70 US Big Corps is sorted by Ascending Effective State Corporate Income Tax Rate Paid, for ease of analysis.

............................................................................State
..............................................State........Core........Tax
...............................................Tax........Pretax......Rate
...............................................Paid.......Income.....Paid
..............................................12 Yrs......12 Yrs....12 Yrs
.................................................(million of $s)

301 Bunge, Ltd (01-09)................0........6,252......0.00%
302 Jefferson Pilot(98-05)...........0........6,190......0.00%
303 Safeco...................................0........5,591......0.00%
304 Royal Caribbean Cruises........0........5,157......0.00%
305 Seagate Technology (01-09)..6........5,937......0.10%
306 Interactive Brokers Group.....8........5,550......0.14%
307 Ensco International...............9........6,097......0.15%
308 Newfield Exploration.............8........5,074......0.16%
309 Noble Energy........................21.......6,193.......0.34%
310 Analog Devices.....................28........5,910......0.47%
311 AmSouth Bancorp(98-05).....31........6,247......0.50%
312 Rockwell Automation............34.......5,860......0.58%
313 MGM Mirage.........................48........5,125......0.94%
314 Nabors Industries, Ltd..........54........5,511......0.98%
315 Questar.................................53........5,345......0.99%
316 BJ Services............................61........5,893......1.04%
317 William Wrigley(98-07)........75........6,302......1.19%
318 Computer Sciences (98-06)...66........5,423......1.22%
319 Cummins...............................68........5,566......1.22%
320 Cooper Industries.................77........6,224......1.24%
321 XL Capital, Ltd.......................67........5,324......1.26%
322 Owens Illinois Group.............69........5,002......1.38%
323 Scana....................................73........5,082......1.44%
324 Oneok...................................76........5,201......1.46%
325 Ashland................................88........5,528......1.59%
326 Lexmark...............................88........5,201......1.69%
327 Ameriprise Financial............88........5,030......1.75%
328 Goodrich..............................95.........5,391......1.76%
329 United States Steel................97........5,497......1.76%
330 CenturyTel.........................107........5,945......1.80%
331 Linear Technology..............104........5,562......1.87%
332 Newell Rubbermaid..............97........5,177......1.87%
333 Whirlpool............................116........6,071......1.91%
334 Maxim Integrated Products.114........5,442......2.09%
335 St Jude Medical...................134........6,329......2.12%
336 Fluor..................................109........5,058......2.16%
337 PacifiCorp...........................111........5,059......2.19%
338 CenterPoint Energy.............124........5,520......2.25%
339 North Fork Bancorp(98-05).122........5,104......2.39%
340 Duke Energy Ohio/Cinergy..147........5,997......2.45%
341 Biogen IDEC.........................138........5,003......2.76%
342 Black & Decker.....................147........5,086......2.90%
343 Intl Game Technology.........173........5,643......3.07%
344 DST Systems........................167........5,225......3.20%
345 Brown Forman.....................185........5,741......3.22%
346 NiSource..............................190........5,668......3.35%
347 Humana...............................205........6,099......3.36%
348 Guidant................................187........5,466......3.42%
349 Janus Capital Group.............181........5,229......3.46%
350 Black Rock (04-09)..............183........5,212......3.51%
351 Allergan...............................189........5,367......3.52%
352 Eastman Kodak.....................190........5,074......3.74%
353 Windstream..........................198........5,074......3.90%
354 TD Ameritrade Holdings.......243........6,163......3.94%
355 AutoNation..........................219........5,382......4.07%
356 Ecolab..................................227........5,315......4.27%
357 KeySpan(98-06)...................246........5,636......4.36%
358 Boston Scientific...................225........5,141......4.38%
359 Intuit....................................266........5,996......4.44%
360 Coventry Health Care...........237........5,175......4.58%
361 First American......................237........5,096......4.65%
362 Symantec..............................266........5,642......4.71%
363 RR Donnelley........................256........5,246......4.88%
364 Supervalu.............................300........6,143......4.88%
365 Caremark RX.........................271........5,517......4.91%
366 Fiserv...................................311........6,237......4.99%
367 Laboratory Corp of America.358........6,145......5.83%
368 WW Grainger.........................342........5,856......5.84%
369 NVR......................................424........6,173......6.87%
370 CME Group...........................454........5,815......7.81%

Total Seventh Layer: 70............9,888....390,532.....2.53%

Turning back specifically to Wisconsin, from a fairness standpoint, the above weighted average effective Wisconsin Corporate State Income Tax Rates Paid by these 11 larger Corps in the past twelve years of 3.03% is very low in comparison with Wisconsin’s current individual income tax rate of 6.5% on income above $20,500 and up to $153,280. When you have a huge projected State Deficit, I think sound reasoning would be to consider raising the Wisconsin State Corporate Income Tax Rate, rather than reducing it.

All of the earlier numbers I presented were before the most recent December 2010 results. Get ready for this.....I think some earnings numbers I am about to show you should surely outrage many Wisconsin citizens.

So Governor Scott Walker gives tax breaks to Corps, which causes Wisconsin's State Budget to be in a Deficit, and then he wants Wisconsin State Employees, including State Educators, to pay for this, and while he's at it, he also wants to kill their bargaining rights, to boot?

Let me show you below just how Wisconsin's 13 largest Corps did as disclosed in their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases:

Wisconsin Big Corps Most Recent Annual Pretax Earnings (PTI)

...................................FYE......PTI........PTI......Increase(Decrease)
Wisconsin Big Corp.....2010...2010.....2009.......Amount.....%.....
................................................(millions of dollars).....

Johnson Controls........Sep.....1,763.....(318).......2,081........654%
Kohl's..........................Jan.....1,588....1,425...........163...........11%
Oshkosh*.....................Sep.....1,212.........12.......1,200...10,000%
Fiserv..........................Dec.......793.......734............59.............8%
Wisconsin Energy........Dec.......704.......591...........113...........19%
Joy Global...................Oct........679.......683............(4)..........(1)%
Rockwell Automation..Sep........544.......274..........270..........99%
Alliant Energy.............Dec........453.......120..........333.........278%
Harley-Davidson.........Dec........390.......179..........211..........118%
Manpower*.................Dec........264.........38..........226..........595%
Associated Banc..........Dec........(41).....(285).........244............86%
MGIC Investment........Dec......(359)..(1,765)......1,406...........80%
Marshall & Ilsley.........Dec......(901)...(1,396).........495...........35%

Total of 13.............................7,089........292......6,797.....2,328%

* Excludes Intangible Asset Impairment Charges. If these charges were included, the above increase in Pretax Income for 2010 of $6,797 mil would be a much higher $7,619 mil.

Yeah, that's correct....these 13 Largest Wisconsin HQed Corps had their Total Pretax Earnings for their most recent fiscal year 2010 increase by a staggering 2,328% over 2009, going from $292 million in 2009 to $7,089 million in 2010. And about half of the country still thinks that the Obama Administration is not helping the US economy. Go figure! I think it's high time for Big Corps to start giving back to the country and hiring employees.

This has to go down in US State history as one of the biggest attempted snow jobs of State Citizens by a sitting State Governor and his Controlled State Legislature. I don't think this is what Wisconsin citizens were voting for in November.

Before, there were only two recent things that really upset me about Wisconsin:

(1)How bad the Badgers football team kept pouring it on against the clearly outmanned Indiana Hoosiers, and

(2)How State voters did not reelect probably the fourth smartest person in the US government....Russ Feingold....just behind Steven Chu, Barack Obama, and Hillary Clinton.

But this attempted snow job of Wisconsin's State citizens clearly trumps the other two.

More to come! On Wisconsin! On Wisconsin! On to Victory! All Wisconsin Sports Rock, but especially the UW at Madison Men's Stellar Cross Country Team!