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!
