One main reason for the high US unemployment, high US underemployment, and high US Debt, is due to the shifting of income, and the related jobs, from the US to low-wage and low-tax foreign countries.
In this research, from a review of annual report income tax footnotes, I derived the US and Foreign Income of the 22 largest High Tech Corps, which had a significant presence overseas.
As expected, in the laissez-faire Bush/Cheney Presidential years, there was a huge shift of income from the US to Foreign jurisdictions.
But I had no idea just how huge this income shift was.
At the end of the Clinton/Gore Presidency in 2000, the Total US Pretax Income mix for these 22 large Big High Tech Corps was 72%.
At the end of the first term of the Bush/Cheney Presidency in 2004, this Total US Pretax Income mix for these 22 large Big High Tech Corps had dropped dramatically to 50%.
And at the end of the second term of the Bush/Cheney Presidency in 2008, this Total US Pretax Income mix for these 22 large Big High Tech Corps dropped dramatically further to only 38%.
So yeah, in the entire Bush/Cheney Presidency, from 2000 to 2008, the Total US Pretax Income mix for these 22 large Big High Tech Corps dropped from 72% to 38%, or nearly by half.
So what happened since the Obama/Biden team took over the reins?
This really surprised me, but this 38% Total US Pretax Income Mix in 2008 has actually reversed course, increasing to 40% in 2009, and further to 43% in 2010. The Obama/High Tech Partnership Connection is on Fire, with the added bonus of fairly spreading the Big High Tech Corp Worldwide Income on a Global Basis.
That's the way it should be. Everyone wins.....the High Tech Corps, the US Worker, and the US Treasury.
Let me convert these percentages to dollars.
During the Bush/Cheney Presidency, Total US Pretax Income of these 22 large High Tech Corps decreased from $56.4 bil in 2000 to $42.6 bil in 2008, or by 23%. In comparison, during this same time span, Total Foreign Pretax Income of these 22 large High Tech Corps increased from $22.1 bil to $69.0 bil, or up by an incredible 216%.
This is the US job killing, US Treasury Depleting eight years of the Bush/Cheney Presidency.
During the Obama/Biden Presidency so far, Total US Pretax Income of these 22 large High Tech Corps increased from $43.6 bil in 2008 to $69.8 bil in 2010, or up by a superb 60%. In comparison, during this same time span, Total Foreign Pretax Income of these 22 large High Tech Corps increased from $69.9 bil to $91.0 bil, or up by a very nice 30%.
This is just beautiful.....large High Tech Big Corps increasing their earnings sharply around the globe, and with the US percentage earnings increase at double the Foreign percentage earnings increase, so far during the Obama/Biden Presidency.
Here are the exact Total Pretax Income (PTI) numbers for these 22 Big High Tech Corps by year:
...................................US...................Foreign
......................US........PTI......Foreign...PTI....Worldwide
......................PTI.......Mix........PTI......Mix.........PTI...
..................................(all dollars in millions)...............
Bush Years
2000........$56,369....72%...$22,134....28%.....$78,503
2004........$35,823....50%...$36,333....50%.....$72,156
2008........$43,579....38%...$69,880....62%....$113,459
Obama Years
2008........$43,579....38%...$69,880....62%....$113,459
2010........$69,783....43%...$90,974....57%...$160,757
If this very positive US PTI Percentage Mix so far during the Obama Years can keep its upward momentum, this bodes very well for US job creation and also for the US Treasury coffers.
Let's hope that the other sectors can match High Tech's very recent favorable trend.
And below here are the most recent Pretax Earnings (PTI) for each of these 22 large Big High Tech Corps for the most recent year:
...........................................................................US
.................................US.......Foreign.......WW......PTI
................................PTI..........PTI..........PTI.......Mix
...............................2010.......2010........2010....2010
......................................(millions of dollars)
Microsoft................8,862.....19,209.....28,071....32%
IBM.........................9,140....10,583.....19,723....46%
Apple......................5,540....13,000.....18,540....30%
Intel......................13,926.......2,119.....16,045....87%
Oracle.....................6,378.......5,033.....11,411....56%
Hewlett Packard......4,027.......6,947....10,974....37%
Google....................4,948........5,848....10,796....46%
Cisco Systems..........1,102.......8,313.......9,415....12%
Texas Instruments..3,769..........782.......4,551....83%
Qualcomm...............1,736.......2,298......4,034....43%
Corning......................975.......2,870......3,845....25%
Dell............................550.......2,800......3,350....16%
Accenture..................527.......2,387......2,914....18%
Emerson Electric.....1,303.......1,576......2,879....45%
Honeywell...............1,249.......1,594......2,843....44%
EMC........................1,408.......1,200......2,608....54%
Ebay..........................848.......1,250......2,098....40%
Johnson Controls.......666.......1,097......1,763....38%
Amazon.com..............886..........611......1,497....59%
Applied Materials.......787.........600......1,387....57%
Yahoo........................872..........198......1,070....81%
Adobe Systems...........284..........659.........943....30%
Total all 22 Techs..69,783.....90,974...160,757...43%
